Suppose There Is a Fiscal Contraction

question 21

Multiple Choice

Suppose there is a fiscal contraction.Which of the following is a complete list of the variables that must decrease?

• A)consumption
• B)consumption and investment
• C)consumption and output
• D)consumption, output and the interest rate
• E) consumption, output and investment

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Definitions:

Necessary and Proper Clause

A provision in the U.S. Constitution granting Congress the power to pass all laws necessary and proper for carrying out its enumerated list of powers.

Delegated Powers

Powers that are granted from one level of government to another, or from a principal to an agent, under the assumption they will be executed in line with certain criteria or objectives.

Printz v. United States

A landmark Supreme Court case that decided on the constitutionality of certain interim provisions of the Brady Handgun Violence Prevention Act.

Federal Regulatory Program

A system of rules and regulations established by the federal government to control and supervise specific activities, industries, or sectors.