Which of the Following Is True with Regard to the Use

question 79

Multiple Choice

Which of the following is true with regard to the use of countercyclical fiscal policy as a stabilization tool?

• A) Successful fiscal policy would be easy to achieve if Congress had greater access to forecasting tools.
• B) Successful fiscal policy is difficult to achieve because Congress acts slowly and our ability to predict the future is limited.
• C) Successful fiscal policy is easier to achieve today because econometric forecasting models are highly accurate.
• D) Congress and the President have persistently altered fiscal policy in a stabilizing manner.

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Definitions:

Fiscal Year

A twelve-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.

Unfunded Mandate

A statute or regulation that requires a state or local government to perform certain actions, with no money provided for fulfilling the requirements.

No Child Left Behind

A U.S. Act of 2001 aimed at closing the achievement gap with accountability, flexibility, and choice, so that no child is left behind in education.

Department of Homeland Security

A federal department in the United States established to ensure the safety and security of the country from terrorist attacks, man-made accidents, and natural disasters.