Why Do Economists Think That the Structural Deficit Is a Good

question 162

Multiple Choice

Why do economists think that the structural deficit is a good measure of the direction of fiscal policy?

• A)Because it adjusts over the business cycle and reflects the fiscal stimulus of policy.
• B)Because it changes when policy changes, rather than when the economy changes.
• C)Because it changes when monetary policy changes, reflecting the interest rate cost of debt.
• D)Because it adjusts automatically, rather than requiring specific legislation.

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Definitions:

Multiply

The operation of finding the total of one number repeated a certain number of times.

Free-Falling Object

An object that is under the influence of gravity only, with no other forces acting on it.

Indicated Operations

The specific mathematical operations (addition, subtraction, multiplication, division) directed to be performed in an expression or equation as denoted by symbols or operation words.

FOIL Method

A technique used to multiply two binomials, standing for First, Outer, Inner, Last.