Incrementalism Refers to the Idea That ______

question 43

Multiple Choice

Incrementalism refers to the idea that ______.

• A) an agency's budget is based on the prior year's figures and will only change by a small amount
• B) policies generally exhibit long periods of stability with short periods of significant change
• C) the federal bureaucracy can be shrunk by presidential order
• D) agencies and unelected officials have an active role to play in policymaking decisions

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Definitions:

Inflation Rates

The rate at which the cost of general goods and services inflates, consequently eroding the power to buy.

Relative Purchasing Power Parity

An economic theory that states the rates of change in price levels between two countries should equal the rate of change in the exchange rate between their currencies.

Triangle Arbitrage

A practice of profiting from the price differential between three different currencies in the foreign exchange market.

Forward Trades

Non-standardized contracts between two parties to buy or sell an asset at a specified future date for a price agreed upon today.