A Political Problem with Discretionary Fiscal Policy Is the

question 45

Multiple Choice

A political problem with discretionary fiscal policy is the

• A)political business cycle.
• B)split control of the legislative and judicial branches of government.
• C)business cycle.
• D)Federal Reserve.

---

Definitions:

Voluntary Export Restraint

A self-imposed limitation by exporting countries on the volume of their exports of a particular good.

Subsidy

A financial contribution granted by a government or another entity to support an industry, business, or individual, usually intended to keep prices low, support an essential service, or encourage activities beneficial to the public interest.

Tariff

A tax imposed on imported goods to either raise state revenue or protect domestic industries from foreign competition.

Quota

A government-imposed limit on the amount or value of goods that can be imported or exported during a specified time period, often used to protect domestic industries.