In the Rational Expectations View, the Best Approach to Fiscal

question 143

Multiple Choice

In the rational expectations view, the best approach to fiscal policy is for the government to

• A)cut taxes.
• B)balance its budget.
• C)eliminate transfer payments.
• D)fix government spending.

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Definitions:

Thermoreceptor

Sensory receptor that detects heat.

Mechanoreceptor

Sensory receptor that responds to mechanical stimuli, such as pressure, sound waves, or gravity.

Photoreceptor

Sensory receptor that responds to light stimuli.

Proprioceptor

Class of mechanoreceptor responsible for maintaining the body’s equilibrium and posture; involved in reflex actions.