Which of the Following Statements About Counter-Cyclical Fiscal Policy Is

question 145

Multiple Choice

Which of the following statements about counter-cyclical fiscal policy is correct?

• A)It is appropriate in situations of a recessionary gap but not when an inflationary gap exists.
• B)It is appropriate in situations of an inflationary gap but not when a recessionary gap exists.
• C)It involves only higher government spending.
• D)It involves only higher taxes.
• E)It is the use of spending or taxation policies by the government to push the economy in a direction opposite to the way it was moving.

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Definitions:

Profit-Making Motive

The intention and desire to conduct activities that result in financial gain or profit.

Non-Profit Partnerships

Collaborations between organizations that operate without the primary goal of making a profit, often seeking to achieve social, educational, or charitable objectives.

Written Agreement

A contract or agreement that is recorded in writing and signed by the parties involved.

Partnership Form

A type of business structure where two or more individuals share ownership, profits, losses, and responsibilities for managing the business.