Which of the Following Statements About Counter-Cyclical Fiscal Policy Is

question 145

Multiple Choice

Which of the following statements about counter-cyclical fiscal policy is correct?

• A)It is appropriate in situations of a recessionary gap but not when an inflationary gap exists.
• B)It is appropriate in situations of an inflationary gap but not when a recessionary gap exists.
• C)It involves only higher government spending.
• D)It involves only higher taxes.
• E)It is the use of spending or taxation policies by the government to push the economy in a direction opposite to the way it was moving.

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Definitions:

ATP Synthase Complexes

Complex enzyme structures that synthesize adenosine triphosphate (ATP), the energy currency of the cell, during the process of cellular respiration or photosynthesis.

Concentration Gradient

The gradual difference in the concentration of solutes in a solution between two regions, often leading to diffusion.

Electron Transport Chain

A series of protein complexes and other molecules that transfer electrons from electron donors to electron acceptors via redox reactions and generate ATP in the process.

Decarboxylation

A reaction in which a molecule of CO2 is removed from a carboxyl group of an organic acid.