Functional Finance

question 42

Multiple Choice

Functional finance:

• A)is based on empirical evidence that fiscal policy can be effective in smoothing business cycles.
• B)is based on the political realities of voters wanting their government to respond to recessions.
• C)is a theoretical proposition, not a moral proposition.
• D)is a proposition supported by public choice economists.

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Definitions:

ADH

Antidiuretic hormone, a chemical produced by the brain that regulates water balance in the body.

Water Reabsorption

Water reabsorption is the process by which the kidneys recover water from urine, making it more concentrated, to maintain body fluid balance.

Diabetes Insipidus

A rare condition where the body cannot regulate fluids properly, leading to intense thirst and heavy urination.

Subfornical Organ

A small organ located in the brain that is involved in regulating bodily fluids and certain behaviors.