A Keynesian Approach to Fiscal Policy Would Be for Government

question 27

Multiple Choice

A Keynesian approach to fiscal policy would be for government budgets to consistently have a _____ role in the economy.

• A) neutral
• B) cyclical
• C) countercyclical
• D) contractionary

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Definitions:

Debt Rescheduling

The act of negotiating new terms for the repayment of existing debts, often involving an extension of payment terms and sometimes a reduction of the interest rate.

Economic Development

The process by which a country improves the economic, political, and social well-being of its people, often measured by increases in per capita income and standard of living.

Corruption

The abuse of entrusted power for private gain, often undermining democracy, ethical values, and justice and leading to various forms of criminal activity, discrimination, and mistrust.

Government Inefficiency

Occurs when government actions result in wasted resources, over-expending, or achieving outcomes that do not maximize social welfare.