Which of the Following Is Considered Contractionary Fiscal Policy

question 279

Multiple Choice

Which of the following is considered contractionary fiscal policy?

• A)Congress increases the income tax rate.
• B)Congress increases defense spending.
• C)Legislation removes a college tuition deduction from federal income taxes.
• D)The New Jersey legislature cuts highway spending to balance its budget.

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Definitions:

Set Point

A theory suggesting that the body regulates its weight and fat level with internal mechanisms, aiming to maintain a stable weight over time.

Fat Tissue

A type of connective tissue in the body that stores energy in the form of fat and provides insulation and cushioning.

Body Weight

The mass or weight of a person, influenced by factors such as body fat, muscle mass, and bone density.

Daily Consumption

The quantity of something that is consumed or used up each day.