How Do Critics of Discretionary Stabilization Policy View Frequent Changes

question 45

Multiple Choice

How do critics of discretionary stabilization policy view frequent changes in spending and tax policy?

• A)The changes make the economy smoother, although it may not look that way to individual firms.
• B)The changes make life more difficult and hectic for Congress and the Fed.
• C)The changes smooth out the business cycle, making planning easier.
• D)The changes cause more instability in the economy and make planning more difficult.

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Definitions:

Rights

Entitlements or permissions granted to individuals or groups by legal systems, societal norms, or moral principles, often protected by law.

Vest

To mature, as in the maturation of rights that allow a party to act legally on the rights.

Perfect

To complete all required legal steps to finalize a lien, security interest, or title claim on property, ensuring it is enforceable against third parties.

Anti-assignment Clause

A provision in a contract that prohibits the transfer of rights or delegation of duties under the contract to another party without consent.