The Reason That Fiscal Policy Was Not Helpful in the 1970s

question 10

Multiple Choice

The reason that fiscal policy was not helpful in the 1970s was that such policy is aimed at

• A)both aggregate demand and aggregate supply,but the problem was only with demand
• B)both aggregate demand and aggregate supply,but the problem was only with supply
• C)aggregate demand only,but the problem was in aggregate supply
• D)aggregate supply only,but the problem was in aggregate demand
• E)either aggregate demand or aggregate supply,but the problem was with both of them at once

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Definitions:

Dividend Amount

The sum of money paid by a company to its shareholders out of its profits.

Preferred Stock

A class of ownership in a corporation with a stated dividend that must be paid before dividends to common stockholders.

Treasury Stock

Shares that were once part of the outstanding shares of a company but were bought back and held in the company's treasury.

U.S. Treasury Department

The federal department responsible for managing government revenue, producing money, and formulating fiscal policy in the United States.