How Do Critics of Stabilization Policy View the "Political Business

question 33

Multiple Choice

How do critics of stabilization policy view the "political business cycle"?

• A)They suggest shorter election cycles would improve stabilization.
• B)They believe that politicians cause economic instability, due mainly to the election schedule.
• C)They believe that the Fed can resist political pressure and stabilize the economy.
• D)They believe that politicians do not know enough economics in order to stabilize the economy.

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Definitions:

Generally Accepted Accounting Principles

A set of accounting standards, principles, and procedures that companies must follow when compiling their financial statements in the U.S.

Duty of Care

A legal obligation imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.

Justifiable Reliance

Justifiable reliance is a legal concept where a party makes a decision based on another party's representation or promise, considering the decision reasonable under the circumstances.

Commits Fraud

The act of intentionally deceiving someone in order to gain an unauthorized benefit or harm another person.