Which of the Following Is a Major Deficiency of Fiscal

question 107

Multiple Choice

Which of the following is a major deficiency of fiscal policy as a stabilization tool?

• A) Congress is reluctant to make changes in either taxes or expenditures.
• B) The Constitution requires the president to submit and Congress to pass a balanced budget.
• C) Both political and economic factors make it unlikely that changes in fiscal policy will be timed correctly.
• D) A change in fiscal policy exerts major effects on the economy quickly.

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Definitions:

Anticommunist Regime

A government or political system actively opposed to communism, often implementing policies to restrict or eliminate communist influence within its jurisdiction.

Truman Doctrine

A U.S. foreign policy established in 1947 by President Harry S. Truman to contain the spread of communism, beginning with aid to Greece and Turkey.

American Freedom Train

A 1970s project that toured the United States with a special train carrying historical artifacts and documents, celebrating American bicentennial and history.

Foreign Policy

A government's strategy in dealing with other nations, influencing how it interacts globally to achieve its interests and objectives.