The Administration of Fiscal Policy Is Handled By

question 73

Multiple Choice

The administration of fiscal policy is handled by:

• A) the Treasury Department.
• B) the Federal Reserve System.
• C) the Office of Management and Budget.
• D) the Internal Revenue Service.

Understand the concept and purpose of foreign exchange reserves in the context of fixed exchange rate policies.

Distinguish between fixed (or pegged) and flexible exchange rate policies.

Comprehend the economic implications of persistent U.S. trade deficits.

Identify the major components of the current and capital and financial accounts in the balance of payments, and how these balances are determined.

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Definitions:

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.

Bizarre Way

In an extremely unusual or strange manner that is far from normal or conventional.

Shaping

A learning procedure in which successive approximations of the desired behavior are rewarded until finally the exact and complete behavior is learned.

Modeling

A learning process where individuals imitate or adopt behaviors, attitudes, or skills by observing others.