To Non-Activists,which of the Following Is the Most Useful Stabilization

question 41

Multiple Choice

To non-activists,which of the following is the most useful stabilization policy?

• A)procyclical monetary and fiscal policy changes
• B)countercyclical monetary changes
• C)government spending changes
• D)None of these.

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Definitions:

Great Depression

A severe worldwide economic crisis that took place during the 1930s, marked by massive unemployment and widespread poverty.

Matching Grant

A funding arrangement where a grant is given on the condition that an equal amount is matched from another source.

Nullification Theory

A legal theory suggesting that U.S. states have the right to nullify, or invalidate, any federal law which they deem unconstitutional.

Dual Federalism

A political arrangement in which power is divided between federal and state governments in clearly defined terms, with state governments exercising those powers accorded to them without interference from the federal government.