Which One of the Following Is TRUE About the Effects

question 269

Multiple Choice

Which one of the following is TRUE about the effects of fiscal policy?

• A) A decrease government spending will increase aggregate supply.
• B) A tax change does not have any direct or indirect effects on aggregate demand.
• C) An increase in government spending will increase aggregate demand.
• D) An increase in government spending will reduce aggregate demand.

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Definitions:

Ingroup Bias

The tendency for people to give preferential treatment or have favorable attitudes towards members of their own group over those from different groups.

Reinforcement

In behavioral psychology, a consequence applied that strengthens a behavior, making it more likely to occur again.

Modeling

A learning process in psychology where individuals learn new behaviors or information by observing and imitating others.

Conformity

The process of aligning one's attitudes, beliefs, and actions with the norms or standards of a group.