A Budget Philosophy Using Fiscal Policy to Achieve the Economy's

question 67

Multiple Choice

A budget philosophy using fiscal policy to achieve the economy's potential GDP,rather than balancing budgets either annually or over the business cycle,is termed:

• A)budget finance.
• B)functional finance.
• C)crowding out.
• D)crowding in.
• E)deficit finance.

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Definitions:

Brokerage Fees

Charges levied by a broker for facilitating transactions between buyers and sellers.

Unrealized Loss

A loss that occurs on paper when the current market value of an investment is lower than its cost but has not been actualized through a sale.

Available-For-Sale Securities

Financial assets held by a firm that can be sold in the financial markets, not classified as held-to-maturity or trading securities.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.