In Contrast to the Structural Deficit,the Cyclical Deficit Reflects

question 67

Multiple Choice

In contrast to the structural deficit,the cyclical deficit reflects

• A)Fluctuations in economic activity.
• B)Fiscal policy decisions.
• C)Changes in discretionary fiscal policy.
• D)Changes in the "full-employment" deficit.

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Definitions:

Dow Average

A stock market index that represents the stock performance of 30 large, publicly-owned companies based in the United States.

Four-Factor Model

An investment model that extends the three-factor model by adding momentum as a factor to account for stock performance.

Excess Returns

The return on an investment beyond the return expected from the risk level, often compared to benchmarks or risk-free returns.

Fama and French

A model developed by Eugene Fama and Kenneth French that expands on the Capital Asset Pricing Model (CAPM) by adding size risk and value risk factors to the market risk factor.