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:

Safe Drinking Water Act

A federal law in the United States aimed at ensuring the quality of Americans' drinking water by regulating its sources and contaminants.

Drinking Water Standards

Regulations determining the minimum quality of water provided for human consumption to ensure it is safe and free from contaminants.

Clean Water Act

U.S. federal law established to regulate pollutant discharges into the waters of the United States and to set water quality standards.

Toxic Chemicals

Substances that can cause harm to humans, animals, plants, or the environment when they are released or their concentration exceeds certain levels.