Question

According to mainstream economic analysis, a balanced-budget rule for fiscal policy would be: Multiple Choice destabilizing....

According to mainstream economic analysis, a balanced-budget rule for fiscal policy would be:

Multiple Choice

  • destabilizing.

  • countercyclical.

  • pro-growth.

  • ineffective.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer to the question:

Option a: Destabilizing

Explanation: The mainstream economist stated that it is not desirable to use the balanced budget in every situation. Using the balanced budget during the recession will make the situation worseand the economic downturn will be painful. Thus, during recession, to stabilize the economy, the budget deficit is required. Otherwise, the balanced budget will destabilize the economy.

Hope, I solved your query. Give good feedback.

Comment, I'll get back to you ASAP.

Stay safe. Thank you.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Discretionary fiscal policy will likely cause budget Multiple Choice surpluses during recessions and deficits during periods...
Discretionary fiscal policy will likely cause budget Multiple Choice surpluses during recessions and deficits during periods of demand-pull inflation. deficits during recessions and surpluses during periods of demand-pull inflation. surpluses during both recessions and periods of demand-pull inflation. deficits during both recessions and periods of demand-pull inflation.
Explain and defend/oppose quote: " The problem with a balanced-budget amendment is that it would, in...
Explain and defend/oppose quote: " The problem with a balanced-budget amendment is that it would, in a sense, require active fiscal policy -- but in the wrong direction - as the economy slides into recession."
Using the concepts of fiscal/monetary policies, active/passive policies, and policy by rule/discretion, indicate whether the policy...
Using the concepts of fiscal/monetary policies, active/passive policies, and policy by rule/discretion, indicate whether the policy is a monetary or a fiscal policy, an active or a passive policy, and a policy by rules or with discretion for each of the following policies a.he central bank follows a policy of allowing the money supply to grow at a constant 4 percent per year; b. the government follows a policy of keeping government spending over a calendar year equal to government...
For various reasons, fiscal policy changes automatically when output and employment fluctuate: Do some online research...
For various reasons, fiscal policy changes automatically when output and employment fluctuate: Do some online research about our last recession in 2007-2009 (or choose any other recession since the Great Depression) and answer the questions below. Address the following topics in your analysis in your own words: A. How did the federal government (President and Congress) respond to the recession? B. What types of fiscal policy did they use (explain in detail)? C. Explain why tax revenue changes when the...
Under a common market agreement, you would find Multiple Choice absence of a common external trade...
Under a common market agreement, you would find Multiple Choice absence of a common external trade policy with regard to nonmembers. free movement of factors of production between member nations. establishment of barriers to the free flow of goods between member nations. a lack of administrative machinery to oversee trade relations with nonmembers. mandatory use of a common currency among member nations. Which of these situations shows how concerns over national sovereignty can act as an impediment to regional economic...
An analysis of the inventory owned by Owens Company as of the Company’s fiscal closing date...
An analysis of the inventory owned by Owens Company as of the Company’s fiscal closing date is shown in the following table. Item Quantity Cost per Unit Market Value per Unit A 200 $ 20 $ 17 B 190 $ 50 $ 52 C 400 $ 34 $ 30 D 320 $ 25 $ 29 Assuming Owens applies the lower-of-cost-or-market rule on an individual basis the amount of inventory shown on the balance sheet would be Multiple Choice $32,900. $35,100....
11. A map of the United States is an example of: Multiple Choice a model that...
11. A map of the United States is an example of: Multiple Choice a model that simplifies the complexities of the country. a theory that simplifies the complexities of the country. an exact representation of the complex details of the country. a version of the circular flow diagram. 12. In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made. Multiple Choice A. government B. market C. firm D....
1.Explain why it would generally not be considered wise economic policy for a government to attempt...
1.Explain why it would generally not be considered wise economic policy for a government to attempt to achieve a balanced budget every year. 2. Consider the individual described below. Which type of unemployment would you suggest that they most likely belong to? Explain. A woman working as a casual University lecturer for the past 7 years has recently lost her job due to the downturn in international student numbers due to COVID-19. Reduced student numbers are a problem at all...
1. The first step in any top down stock valuation is:A. economic analysis.B. an accurate stock...
1. The first step in any top down stock valuation is:A. economic analysis.B. an accurate stock market prediction.C. financial analysis.D. industry analysis. 2. Which of the following is not a goal of the federal government economic policy as established by the Employment Act of 1946?A. Low inflationB. High levels of employmentC. Balanced federal budgetsD. Economic growth 3. The most widely used tool of the Federal Reserve is: A. open-market operations (buying and selling securities for its own portfolio).B. changing the...
Argentina and Ecuador: Understanding the Currency Crisis While fiscal policy is never far from the mind...
Argentina and Ecuador: Understanding the Currency Crisis While fiscal policy is never far from the mind of your average Argentine, who remembers the tough times and hyperinflation of the 1980s, the events of 2001 and 2002 have brought fiscal policy back to the forefront of public concern. Though the early 1990s may have been characterized by financial optimism, Argentina has been in a recession since Brazil's 1998 monetary crisis sent shockwaves across the regional and global markets. In early 2002,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT