41. Which of the following is an example of a contractionary fiscal policy measure?
a. Decreasing income tax rates
b. Increasing government transfers
c. Increasing government spending
d. Decreasing government spending
42. The term “fiscal stimulus” refers to:
a. Policies that increase government borrowing
b. Policies that decrease government borrowing
c. Policies that increase interest rates
d. Policies that decrease interest rates
43. Which of the following is an example of an automatic stabilizer?
a. Infrastructure spending
b. Unemployment benefits
c. Corporate tax cuts
d. Export subsidies
44. The term “debt-to-GDP ratio” measures:
a. The total debt owed by the government
b. The total debt owed by individuals in the economy
c. The ratio of government debt to the country’s gross domestic product
d. The ratio of government debt to the country’s gross national product
45. Which of the following is an example of a discretionary fiscal policy measure?
a. Automatic adjustments to income tax rates
b. Automatic adjustments to government transfers
c. Changes in government spending on infrastructure
d. Changes in interest rates by the central bank
