The Cyclical Deficit Is the Portion of the Deficit

question 19

Multiple Choice

The cyclical deficit is the portion of the deficit

• A)that is the result of nondiscretionary government spending.
• B)that would exist if the economy was at potential real GDP.
• C)created by fluctuations in real GDP.
• D)that is the result of discretionary government spending.

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Definitions:

Consumer Financial Protection Bureau

A regulatory agency in the United States tasked with ensuring consumers are treated fairly by banks, lenders, and other financial companies.

Federal Reserve

The central banking system of the United States, responsible for implementing the country's monetary policy and regulating its banking institutions.

Deception

The act of misleading or tricking someone in order to gain an advantage or cause harm.

False Representation

A deceitful statement or misrepresentation made knowingly with the intention of misleading another party, often relevant in fraud cases.