It Will Be Difficult to Institute Fiscal Policy in a Stabilizing

question 29

Multiple Choice

It will be difficult to institute fiscal policy in a stabilizing manner because politicians will find

• A) it more attractive to raise taxes than to increase spending.
• B) it attractive to increase taxes during a recession, but they will be reluctant to reduce them during an expansion.
• C) budget deficits attractive during a recession, but they will be reluctant to run budget surpluses during an expansion.
• D) budget surpluses attractive during a recession, but they will be reluctant to run budget deficits during an expansion.

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Definitions:

Puberty

The developmental stage during which children's bodies begin to develop and change into adult bodies, capable of sexual reproduction, marked by hormonal changes and physical growth.

Prepubescent

Describes a phase in human development immediately preceding puberty, during which sexual features are not yet developed.

Lower-Than-Normal IQ

A measure of cognitive ability that is significantly below the average score for the population.

Severe Physical Abuse

Intense and harmful physical force or action inflicted on an individual, causing injury, pain, or trauma.