Which of the Following Creates the Least Risk That Stabilization

question 37

Multiple Choice

Which of the following creates the least risk that stabilization policy will be either ineffective or counterproductive?

• A) Uncertainty regarding the magnitude of the expenditure multiplier
• B) The possibility of a Ricardian-equivalence saving response to a tax cut perceived to be temporary
• C) The likelihood of crowding out following a tax reduction
• D) The decision lag associated with monetary policy
• E) The implementation lag associated with fiscal policy

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Definitions:

Free Association

A psychoanalytic process in which a patient says whatever comes to mind without censorship, used to explore the unconscious.

Positive Transference

In psychotherapy, the phenomenon where a patient projects positive feelings towards the therapist, often mirroring past relationships.

Negative Transference

The projection of intense, negative feelings and attitudes from a patient towards their therapist, rooted in past relationships.

Free Association

A psychoanalytic technique in which clients are encouraged to express freely any thoughts, feelings, or images that come to mind, without censorship or filtering.