All of the Following,except One,are Arguments Against the Use of Counter-Cyclical

question 32

Multiple Choice

All of the following,except one,are arguments against the use of counter-cyclical fiscal policy to close a recessionary gap.Which is the exception?

• A)Counter-cyclical fiscal policy can be inflationary.
• B)Counter-cyclical fiscal policy is subject to serious time lags.
• C)Counter-cyclical fiscal policy can increase interest rates and crowd out private investment spending.
• D)Counter-cyclical fiscal policy can reduce budget deficits,but this would also lower the exchange rate.

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Definitions:

Value And Culture Clash

The conflict that arises when differing beliefs, practices, or values are in opposition between groups or within an individual.

Conflict Resolved

A situation where a disagreement or problem has been successfully addressed and settled.

Resurfacing

The process of bringing up old memories, feelings, or ideas to the forefront of consciousness for reconsideration or therapy.

Win/Lose Strategy

An approach to conflict or competition where one party's gain is perceived as another's loss, contrary to cooperative models.