Discretionary Fiscal Policy

question 226

Multiple Choice

Discretionary fiscal policy

• A) may not have desired effects on real GDP because of the time lags.
• B) may not have desired effects on real GDP because it leads to increases in aggregate demand.
• C) may not have desired effects on real GDP because it leads to decreases in aggregate demand.
• D) would have a larger effect on real GDP if the multiplier was smaller.

Identify and explain the measures of risk including variance, beta, and alpha.

Learn about the concept of arbitrage and its role in financial markets.

Analyze the significance of the market portfolio and its characteristics according to the CAPM.

Appreciate the impact of liquidity and other factors not fully explained by CAPM on security pricing.

---

Definitions:

Violent Media

Media content characterized by acts of physical aggression, harm, or violence intended to cause physical injury or intimidation.

Aggressive Behavior

Actions intended to harm or intimidate another individual, either physically or psychologically.

Floor Hockey

A team sport similar to ice hockey but played on a dry floor surface using sticks and a lightweight plastic puck or ball.

Violent Cartoons

Animated programming that includes acts of aggression or physical harm towards characters, often a subject of debate regarding its influence on children.