According to the Graph Shown, the Consequence of Expansionary Fiscal

question 11

Multiple Choice

According to the graph shown, the consequence of expansionary fiscal policy is:

• A) inflation.
• B) deflation.
• C) a greater level of potential output.
• D) a lower level of potential output.

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Definitions:

ESOPs

Employee Stock Ownership Plans, a program that provides a company's workforce with an ownership interest in the company.

Significant Risk

The potential for a substantial negative outcome, affecting health, safety, or the environment.

Shareholders Votes

The rights of shareholders to vote on corporate matters, such as electing directors or approving policies, typically based on the number of shares they own.

Trust Holdings

Assets held in a trust by one party for the benefit of another, including real estate, stocks, bonds, and other investments.