Which One of the Following Is an Area of Agreement

question 31

Multiple Choice

Which one of the following is an area of agreement among modern macroeconomists with regard to the use of fiscal policy?

• A) Congressional action is necessary if automatic stabilizers are going to be an effective stabilization tool.
• B) It is difficult to time changes in discretionary fiscal policy in a manner that will promote stability.
• C) Fiscal policy is more potent than the early Keynesian view implied.
• D) Budget deficits are a highly effective tool with which to combat a severe recession.

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Definitions:

Products

are goods or services that are created through a process and offered in the market to satisfy the needs or desires of consumers.

Profit

The financial gain obtained when revenues exceed the costs associated with business operations or investments.

Heart

That which is vital; the center or core of a person or thing. Expressing one’s innermost thoughts and feelings is termed “speaking from the heart,” and it is the basis of credibility and trust.

Emotional Intelligence

The capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically.