An Economist Who Follows a Functional Finance Principle Believes That

question 5

Multiple Choice

An economist who follows a functional finance principle believes that the government should:

• A)do nothing in response to a recession.
• B)do nothing in response to a recession due to the Ricardian equivalence theorem.
• C)run either a deficit or surplus depending on the state of the economy.
• D)run a balanced budget.

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Definitions:

Sabotage

Deliberate actions aimed at damaging, disrupting, or undermining the operations of an employer, often as a form of protest by workers or activists.

Union-Free Movement

A movement aimed at preventing unionization within organizations, often by promoting direct relationships between workers and management without the intermediation of unions.

Samuel Gompers

A key figure in American labor history, he was the founder of the American Federation of Labor (AFL) and a leading advocate for workers' rights and unionism in the late 19th and early 20th centuries.

Global Competition

The dynamic and competitive environment characterized by businesses from across the world vying for consumers, market share, and investment in the global marketplace.