The Deliberate Use of Changes in Government Spending And/or Taxes

question 16

Multiple Choice

The deliberate use of changes in government spending and/or taxes to alter AD and stabilise the business cycle is called:

• A) monetary policy.
• B) important international policy.
• C) continuous fiscal policy.
• D) discretionary fiscal policy.

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Definitions:

Kinesthesia

The sense that detects body position, weight, or movement of the muscles, tendons, and joints, enabling physical coordination.

Index Finger

The second digit of the human hand, located between the thumb and the middle finger, often used for pointing.

Sensory Interaction

The theory that senses can impact each other, for instance, how the aroma of food can improve its flavor.

Dissociation

An emotional state where an individual experiences a detachment from their own thoughts, emotions, memories, or personal identity.