Countercyclical Fiscal Policy Consists Of

question 91

Multiple Choice

Countercyclical fiscal policy consists of:

• A) using expansionary fiscal policy during times of expansion and contractionary fiscal policy during times of recession.
• B) using expansionary fiscal policy during times of recession and contractionary fiscal policy during times of recession.
• C) using expansionary fiscal policy during times of expansion and contractionary fiscal policy during times of expansion.
• D) using expansionary fiscal policy during times of recession and contractionary fiscal policy during times of expansion.
• E) using expansionary fiscal policy and contractionary fiscal policy at the same time.

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Definitions:

Choose

A term often associated with selecting options or making decisions from a set of alternatives.

Risk

The potential for loss or an undesirable outcome, often assessed in the context of investments or decision-making.

Portfolio

An array of fiscal investments encompassing stock shares, bond notes, commodities, spendable cash, and assets comparable to cash, plus mutual funds and ETFs.

Portfolio Expected Return

The weighted average of the expected returns on the assets included in a portfolio, representing the overall expected profit or loss.