Countercyclical Fiscal Policy Consists of Using Expansionary Fiscal Policy

question 6

Multiple Choice

Countercyclical fiscal policy consists of using expansionary fiscal policy

• A) during times of expansion and contractionary fiscal policy during times of recession.
• B) during times of recession and contractionary fiscal policy during times of recession.
• C) during times of expansion and contractionary fiscal policy during times of expansion.
• D) during times of recession and contractionary fiscal policy during times of expansion.
• E) and contractionary fiscal policy at the same time.

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Definitions:

Indefinite Period

A time span without a specified end date.

Merger Clause

A contract clause providing that the written contract is the complete expression of the parties’ agreement. Also called integration clause.

Integration Clause

A provision in a contract that declares it to be the complete and final agreement between the parties, superseding all prior discussions or agreements.

Statute of Frauds

A legal principle requiring certain types of contracts to be executed in writing and signed by all parties to be enforceable.