An Intended Goal of Contractionary Fiscal Policy and a Tightening

question 30

Multiple Choice

An intended goal of contractionary fiscal policy and a tightening of monetary policy is

• A) an increase in interest rates.
• B) an increase in the price level.
• C) a decrease in the unemployment rate.
• D) a decrease in the level of aggregate output.

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Definitions:

Competence

Being able to use your skills effectively and learn new ones.

Relatedness

The feeling of connection or bond with others, often considered a fundamental human need influencing social interactions and personal well-being.

Avoidance Motivation

A behavior driven by the desire to avoid negative outcomes or stimuli, often leading to the evasion of certain situations or tasks.

Mindfulness

Being aware of your thoughts and feelings without becoming attached to them.