An Example of Nondiscretionary Fiscal Policy Would Be

question 18

Multiple Choice

An example of nondiscretionary fiscal policy would be

• A)the existence of the progressive federal income tax.
• B)a federal jobs program adopted to stimulate consumption.
• C)a tax cut adopted to stimulate consumption.
• D)an interest rate cut implemented to stimulate consumption.

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Definitions:

Holt's Model

A forecasting technique that extends exponential smoothing to allow forecasting of data with a trend.

Trend Component

An underlying pattern in data that shows a persistent, general direction of movement over time.

Simple Exponential Smoothing

A time series forecasting method for univariate data that applies decreasing weights to past observations as they age.

Mean Absolute Deviation

A statistical measure of the dispersion or variability in a data set, calculated as the average distance between each data point and the mean of the data set.