Which of the Following Statements Regarding the Role of the Federal

question 62

Multiple Choice

Which of the following statements regarding the role of the federal government in the economy is correct?

• A) The Federal Reserve Board has primary responsibility for setting fiscal policy.
• B) Most Americans would prefer an economy completely free of any federal regulations.
• C) The scope of federal activity in the economy contracts during economic downturns and expands during economic recoveries.
• D) Presidential election outcomes are heavily influenced by the health of the economy.

---

Definitions:

Social Structure

The organized pattern of social relationships and social institutions that together compose society.

Strict Liability

A legal doctrine holding an individual or entity responsible for damages or harm caused by their actions, regardless of fault or intent.

Doctrine

A set of beliefs, principles, or positions, often upheld by a specific group or institution.

Principal Consideration

The main or most significant factor influencing a decision or agreement in a contractual arrangement.