What Did the Sound Finance Approach to Fiscal Policy Use

question 21

Multiple Choice

What did the sound finance approach to fiscal policy use to support its view?

• A)Keynesian economics
• B)A history of successful procyclical fiscal policy
• C)The functional finance view
• D)The Ricardian equivalence theorem

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Definitions:

Peripheral Route

One of the two paths of persuasion according to the Elaboration Likelihood Model, where people are influenced by superficial cues rather than detailed message content.

Tangentially Relevant

Pertains to a matter or subject that is slightly or indirectly related to the core issue or focus.

Statistics

The science dealing with the collection, analysis, interpretation, and presentation of numerical data.

Dissonance Theory

A psychological theory suggesting that individuals experience discomfort (dissonance) arising from inconsistent beliefs, attitudes, or behaviors and are motivated to reduce this discomfort by changing them to achieve consistency.