Which of the Following Policies Would Reduce the Procyclical Nature

question 95

Multiple Choice

Which of the following policies would reduce the procyclical nature of fiscal policy at the state level?

• A)The establishment of "rainy-day funds"
• B)The introduction of price controls
• C)The institution of balanced budget requirements
• D)The elimination of automatic stabilizers

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Definitions:

Behavior Therapists

are mental health professionals who utilize principles of behaviorism to treat psychological disorders and challenges by altering unhealthy behaviors.

Psychoanalytically Oriented

A method in psychology that focuses on understanding human behavior, thoughts, and emotions in terms of unconscious processes as originally proposed by Freud.

Feeling; Action

Feeling refers to the subjective experience of emotions; action denotes the processes or behaviors initiated in response to feelings or thoughts.

Classical Freudian

Pertaining to the original theories and therapeutic methods developed by Sigmund Freud, focusing on unconscious motivations and early childhood experiences.