The Set of Fiscal Policies That Would Be Most Contractionary

question 30

Multiple Choice

The set of fiscal policies that would be most contractionary would be a(n) :

• A) Increase in government spending and taxes
• B) Decrease in government spending and taxes
• C) Increase in government spending and a decrease in taxes
• D) Decrease in government spending and an increase in taxes

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Definitions:

Conditioned Response

is a learned reaction to a conditioned stimulus that occurs because of previous conditioning, typically in the context of classical conditioning.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a reflexive response without the need for prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response in classical conditioning.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without prior conditioning or learning.