In Order for Fiscal Policy to Effectively Offset a $1

question 128

Multiple Choice

In order for fiscal policy to effectively offset a $1 million decrease in consumer spending,the government would MOST likely have to:

• A) keep a balanced budget.
• B) increase spending by $1 million.
• C) increase spending by more than $1 million.
• D) increase spending by less than $1 million.

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Definitions:

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a concern about future events.

Factors

Variables or elements that contribute to producing a result or condition.

Assessment Report

A document that summarizes the findings, interpretations, and recommendations following a psychological evaluation.