Fiscal Policy Cannot Be Used to Deal with Inflation on a Long-Term

question 45

Multiple Choice

Fiscal policy cannot be used to deal with inflation on a long-term basis because:

• A) government cannot lower the growth rate in the money supply indefinitely.
• B) there is a limit as to how much government can cut taxes.
• C) government may have difficulties on reaching a compromise as to the appropriate policy, a change in taxes or a change in government spending.
• D) there is a limit as to how much government can decrease spending.

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Definitions:

Poor Communication

A failure to convey or exchange information effectively, often leading to misunderstandings and conflicts among individuals or groups.

Interpersonal Communication

The process of exchanging information, feelings, and meanings between people through verbal and/or non-verbal messages.

Nonverbal Communication

Communication without words; includes gestures, facial expressions, body language, and other visual cues.

Unpopular Choices

Options in decision-making that are not preferred or favored by the majority.