One Characteristic of Automatic Fiscal Policy Is That It

question 219

Multiple Choice

One characteristic of automatic fiscal policy is that it

• A) requires no legislative action by Congress to be made effective.
• B) automatically produces surpluses during recessions and deficits during inflation.
• C) has no effect on unemployment.
• D) reduces the size of the federal government debt during times of recession.

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Definitions:

Probability Distribution

A function in statistics that enumerates all conceivable values and their associated probabilities for a random variable within a predetermined range.

Variance

A measure of the dispersion or spread of a set of values, indicating how much the numbers in the set differ from the mean.

Diversifiable Risk

A risk that can be reduced or eliminated from a portfolio through diversification, not linked to the market's movements as a whole.

Company-Specific

Company-Specific refers to factors or risks that affect an individual company's performance, distinct from broader market or industry factors.