A Key Tool of Countercyclical Fiscal Policy Is

question 25

Multiple Choice

A key tool of countercyclical fiscal policy is

• A) the interest rate
• B) the federal funds rate
• C) the tax code
• D) the regulatory code
• E) Presidential executive orders.

---

Definitions:

Measure

To ascertain the size, amount, or degree of something using a standard unit or instrument.

Pearson Product-moment

A correlation coefficient that measures the strength and direction of a linear relationship between two continuous variables.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Positive Linear Relationship

A relationship in which increases in the values of the first variable are accompanied by increases in the values of the second variable.