Fiscal policy Clicker Questions

[#1]

Increasing the number of weeks that unemployed people are eligible for unemployment benefits is a(n) _________ fiscal policy.

A) contractionary

B) automatic

C) discretionary

D) expansionary

E) both B and D

E) both C and D

True or false: Fiscal policy can only affect aggregate demand.

Which of the following would be most effective for fighting inflation?

A) Decreasing government transfers

B) Increasing defense spending

C) Decreasing taxes

D) Increasing government transfers

E) None of the above

Which of the following is an example of expansionary fiscal policy?

A) Increasing government transfers

B) Increasing taxes

C) Increasing interest rates

D) Increasing inflation

E) All of the above