The Main Goal of Fiscal Policy Should Always Be to

question 120

Multiple Choice

The main goal of fiscal policy should always be to

• A)generate a budget deficit.
• B)balance the budget.
• C)balance C + I with government spending.
• D)balance aggregate demand with aggregate supply.

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Definitions:

Compounded Monthly

The process of earning interest on both the original deposit and the accumulated interest from previous periods, calculated on a monthly basis.

Trust Fund

A legal arrangement in which assets are held by a third party for the benefit of another party or parties.

Compounded Quarterly

A financial term meaning the interest earned on an investment is calculated and added to the principal every three months, leading to the interest earning interest in subsequent quarters.

Monthly Payments

Regular amounts paid every month, usually in the context of loans or subscriptions.