If It Were Not for the Automatic Stabilizers in the U.S.economy

question 30

Multiple Choice

If it were not for the automatic stabilizers in the U.S.economy,

• A)the Federal Reserve would have less reason than it has now to monitor stock prices.
• B)it would be more desirable than it is now for the Federal Reserve to target an interest rate.
• C)a strict balanced-budget rule would be more desirable than it is now.
• D)output and employment would probably be more volatile than they are now.

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Definitions:

Ego

In psychoanalytic theory, the part of the psyche that mediates demands from the id, superego, and reality.

Id

A component of Sigmund Freud's model of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Self-Efficacy

One’s sense of competence and effectiveness.

Narcissistic

Pertaining to a personality trait characterized by excessive self-love, a need for admiration, and a lack of empathy for others.