Which of the Following Was an Argument in Favor of Using

question 48

Multiple Choice

Which of the following was an argument in favor of using discretionary fiscal policy in fighting the Great Recession?

• A)Monetary policy could not be effective, since interest rates were near zero.
• B)If taxes were increased, the budget could be balanced.
• C)If government spending decreased, the budget surplus would increase.
• D)The lags associated with monetary policy would be destabilizing.

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Definitions:

Thalamus

A structure in the brain that acts as a relay station for sensory and motor signals to the cerebral cortex, playing a key role in processing and transmitting information.

Memory

The cognitive function that allows an individual to store, retain, and recall information from past experiences.

Saint-John's-Wort

A herbal plant traditionally used in the treatment of mild to moderate depression, though its efficacy and safety are subjects of ongoing research.

Depression

A mental health disorder marked by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.