A Key Difference Between Functional Finance and Sound Finance Is

question 117

Multiple Choice

A key difference between functional finance and sound finance is that in the functional finance approach, the government has the potential for:

• A)a more active role in spending and taxing decisions.
• B)a less active role in spending and taxing decisions.
• C)no role since functional finance holds that on moral principle the budget should be balanced.
• D)more active role in spending and taxing but only during depressions.

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Definitions:

Somatic Component

Pertains to the physical or bodily aspects of psychological and emotional experiences.

Panic Attack

A panic attack is a sudden onset of intense fear or discomfort, marked by various physical and emotional symptoms like rapid heartbeat and feelings of dread.

Ecological Systems Theory

A framework proposing that individual development is influenced by different levels of environmental systems.

Macrosystem

In the context of Ecological Systems Theory, it represents the broader cultural conditions, beliefs, values, customs, and laws that influence an individual's development.