One Thing That Is True About Economic Policy in the U.S

question 87

Multiple Choice

One thing that is true about economic policy in the U.S. is:

• A) fiscal and monetary policy never conflict.
• B) monetary and fiscal policy need not, but may conflict.
• C) monetary policy ultimately controls fiscal policy since the Fed controls the money supply.
• D) fiscal policy ultimately controls monetary policy since Congress can control the Fed's budget.

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Definitions:

Two-Factor Theory

A psychological theory that posits emotions are based on physiological arousal and cognitive label.

Cognitive Appraisal

A process by which an individual evaluates and interprets a situation or event, determining its significance and the response it requires.

Physical Arousal

A physiological response of the body that prepares it for action, characterized by increased heart rate, breathing, and blood pressure, often triggered by stress, excitement, or exercise.

Spillover Effect

The phenomenon in which feelings, attitudes, or behaviors in one area of one's life transfer to, or influence, another.