The principle underlying fiscal policy states that when unemployment is rising and the economy is going into a recession, fiscal policy should:
A. stimulate economic activity by decreasing taxes.
B. curb economic activity by reducing government spending.
C. let the forces of supply and demand operate on their own.
D. employ a tight-money policy.
E. reduce the rate of growth in the amount of money in circulation.
Answer: A
You might also like to view...
Explain the importance of the line item veto to the power of the governor.
What will be an ideal response?
What is a bully pulpit and how can presidents use it to influence public policymaking in the United States? Is this method effective only when presidents are popular? Why or why not?
What will be an ideal response?
Which of the following is the largest and most effective broad-based agricultural interest group?
A. The American Farm Bureau Federation B. The National Association of Social Workers C. Common Cause D. Consumers Union E. The National Grange
Suppose a study showed that voter turnout in Country X had
been steadily rising over the past decade, and a separate study showed that the president's job approval rating was also steadily rising during that period. This would provide evidence to support which type of explanation? a. Constructivist b. Ideational c. Institutional d. Rational-material