Functional Finance

question 14

Multiple Choice

Functional finance:

• A)is designed to increase the MPC in the interest of greater macroeconomic stability
• B)leads to annually balanced budgets
• C)treats the government budget primarily as a means of stabilizing the economy
• D)is defended by those economists who are most sceptical of fiscal policy's effectiveness
• E)leads to cyclically balanced budgets

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Definitions:

Alienation

Alienation refers to the feeling of being isolated from a group or activity to which one should belong or in which one should be involved, often resulting from structures of power and control.

Information Revolution

The rapid spread and use of information technologies that began in the latter half of the 20th century, transforming the way information is produced, stored, and consumed.

Decade

A period of ten years.

International Trade

The exchange of goods, services, and capital across international borders, enabling countries to participate in global economies.