A Major Side-Effect of a Stimulative Fiscal Policy Is That

question 8

Multiple Choice

A major side-effect of a stimulative fiscal policy is that it will

• A)discriminate in favor of housing.
• B)crowd out private expenditures.
• C)increase the natural rate of unemployment.
• D)permanently raise the rate of inflation.

---

Definitions:

Flow Chart

A graphical representation of a process or system showing the sequence of steps or operations using symbols and arrows.

Control System

Mechanisms or procedures implemented to guide activities towards achieving organizational objectives, often through monitoring and feedback.

Objectives

Specific, measurable targets a person or organization plans to achieve within a defined timeframe to fulfill broader goals.

Cause-And-Effect Analysis

A method used to identify the underlying causes of a problem or event by examining the relationship between actions and outcomes.