An Example of Fiscal Policy Is

question 268

Multiple Choice

An example of fiscal policy is

• A)a reduction in government spending.
• B)a reduction in investment spending by the private sector.
• C)an increase in autonomous spending by consumers.
• D)an increase in Social Security spending by the elderly.

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Definitions:

Heating

The process of increasing the temperature of a substance or space, which can lead to changes in state, reactions or expansions.

Crust

The outermost layer of the Earth, comprising continental and oceanic crust and characterized by a composition distinct from the underlying mantle.

Erosion

The process by which soil and rock are removed from the Earth’s surface by exogenic processes such as wind or water flow, and then transported and deposited in other locations.

Hot Spot

A volcanic region thought to be fed by underlying mantle that is anomalously hot compared with the surrounding mantle, capable of producing volcanic islands.