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.

Solve complex problems involving multiple steps and calculations to find exact numerical answers.

Understand the rights and responsibilities of corporate directors and officers.

Comprehend the characteristics and implications of stock certificates and shareholder ownership.

Recognize the mechanisms and procedures for corporate dissolution and liquidation.

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Definitions:

Market Forces

The natural effects of supply and demand that determine prices and resource allocation in a market economy.

Collective Decision-Making

The use of the political process (voting, taxes, government spending, regulation, political bargaining, lobbying, and so on) to make decisions and allocate resources. In a democratic setting, the votes of citizens and their representatives will determine the actions undertaken.

Basic Economic Questions

Fundamental questions that every economic system must address: What to produce, how to produce, and for whom to produce.

Private-Property Rights

Legal provisions that allow individuals to own, control, and benefit from property such as land, buildings, or intellectual property.