An Expansionary Fiscal Policy

question 132

Multiple Choice

An expansionary fiscal policy:

• A)in the presence of a budget deficit would decrease the government debt.
• B)would shift AD to the right and increase the government budget deficit.
• C)would shift AD to the left and decrease the government budget deficit.
• D)would not be effective in the presence of a budget surplus.

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Definitions:

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting heart rate, blood pressure, and blood sugar levels.

Adrenergic Receptors

Adrenergic receptors are proteins located on cell surfaces that respond to adrenaline (epinephrine) and noradrenaline (norepinephrine) to mediate physiological responses.

G Proteins

A family of protein molecules that act as molecular switches inside cells, involved in transmitting signals from a variety of stimuli outside a cell to its interior.

Muscarinic Blocking Agent

A muscarinic blocking agent is a type of drug that inhibits the action of acetylcholine at muscarinic receptors, affecting various bodily functions such as heart rate and glandular secretions.