Recall the Application About Fed Chairman Ben Bernanke's Views on How

question 128

Multiple Choice

Recall the Application about Fed Chairman Ben Bernanke's views on how to fight a liquidity trap to answer the following question(s) .
-The classic political business cycle would have a politician following

• A) expansionary policies before an election, and contractionary policies after the election.
• B) contractionary policies before an election, and expansionary policies after the election.
• C) expansionary policies before and after an election.
• D) contractionary policies before and after an election.

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Definitions:

Positive Economic Statement

An objective statement that can be tested or validated through observation or empirical evidence.

Economic Theory

A framework or set of principles formulated to analyze the economy and make predictions about various economic scenarios.

Rational Self-Interest

A theory that suggests individuals always make decisions that they perceive to be in their own best interest.

Pure Selfishness

an ethical or philosophical perspective prioritizing self-interest or personal gain above the welfare of others.