Which of the Following Is Part of the Synthesis View

question 100

Multiple Choice

Which of the following is part of the synthesis view of fiscal policy?

• A) Automatic stabilizers offset some of the fluctuations in aggregate demand without any government action.
• B) Fiscal policy is much less potent than the early Keynesian view implied.
• C) The effectiveness of discretionary fiscal policy as a stabilization tool is highly questionable given the difficulties in proper timing.
• D) All of the above are correct.
• E) None of the above is correct.

---

Definitions:

Weights

In finance, refers to the proportion of each asset within a portfolio or a composite measurement, indicating its relative importance or contribution to the overall performance.

Return

The profit or loss generated on an investment over a certain period, usually expressed as a percentage of the initial investment.

Portfolio Theory

A framework for building an investment portfolio that aims to maximize returns by taking a specified amount of market risk.

Markowitz

Refers to Harry Markowitz, an economist known for his pioneering work in modern portfolio theory and investment diversification.