Which Fiscal Policy Would Make a Budget Surplus Larger or a Budget

question 71

Multiple Choice

Which fiscal policy would make a budget surplus larger or a budget deficit smaller?

• A) an increase in government purchases of goods and services
• B) lower government transfers
• C) lower taxes
• D) higher interest rates

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Definitions:

Transtheoretical Model

A theory of behavioral change that describes five stages individuals go through to change their behavior: precontemplation, contemplation, preparation, action, and maintenance.

Maintenance

The ongoing care or upkeep of systems, equipment, or property to ensure continued functioning and prevention of degradation or failure.

Precontemplation

The stage in which individuals are not yet considering a change in their behavior or are unaware of the need for change.

Contemplation

The action of thinking deeply or considering something carefully over a period of time.