In Order for the United States to Use Discretionary Fiscal

question 160

Multiple Choice

In order for the United States to use discretionary fiscal policy to deal with a recessionary gap,

• A)the public must elect members of Congress that understand economics.
• B)the President and Congress must agree on which taxes to hike.
• C)time must pass in order for Congress to decide what taxes and government programs to change.
• D)the President's and Congress's economic advisors must agree on the proper government programs to slash.
• E)since 2002, the President has been given the authority to make up to a 10 percentage point change in government expenditure programs.

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Definitions:

Net Income

Net income is the total amount of profit a company earns after subtracting all of its expenses, taxes, and costs from its total revenue.

Unlimited Liability

A legal structure in business where owners are personally liable for all the debts and obligations of the business.

Limited Life

A term that refers to the finite operational lifespan of an entity, asset, or agreement, after which it ceases to exist or operate.

Limited Liability

A legal structure that limits the amount of financial responsibility of the entity's owners to the amount they have invested.