A Major Complication with Fiscal Policy to Control Aggregate Demand

question 43

Multiple Choice

A major complication with fiscal policy to control aggregate demand is the

• A)inability to agree on macroeconomic goals.
• B)accuracy of modern forecasting models.
• C)inability to change aggregate demand with fiscal tools.
• D)constantly changing investment and net exports because of other events.

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Definitions:

Rights to Collateral

Legal entitlements of a secured creditor to seize and sell the collateral if the debtor fails to fulfill the obligations of the loan or debt agreement.

Loan Due

The date by which a borrower is expected to repay the borrowed amount in full to the lender.

Rights in Bankruptcy

Legal protections and claims a debtor or creditor has during the bankruptcy process, including claims to assets and discharge of debts.

Homestead Exemption

A legal provision that protects a portion of a homeowner's principal residence from creditors and reduces property tax.