Other Things Equal, Which of the Policies Will Have the Most

question 59

Multiple Choice

Other things equal, which of the policies will have the most expansionary effect on the economy?

• A)a balanced budget
• B)a budget surplus held as an idle money balance
• C)a budget deficit financed by creating new money
• D)a budget surplus used for debt retirement

---

Definitions:

New Deal

An array of initiatives, including public infrastructure projects, monetary policy changes, and regulatory measures, implemented by President Franklin D. Roosevelt in the 1930s in the United States to combat the effects of the Great Depression.

FDIC

The Federal Deposit Insurance Corporation, a United States government agency that provides deposit insurance to depositors in U.S. commercial banks and savings institutions.

SEC

Short for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and enforcing federal securities laws.

Food Stamps

A governmental assistance program providing low-income individuals and families with funds to purchase groceries, aiming to improve nutrition and alleviate food insecurity.