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13 Jul 2014, 23:53
Kudos
Bookmarks
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
55% (01:57) correct
45%
(02:15)
wrong
based on 563
sessions
History
Date
Time
Result
Not Attempted Yet
Columnist: In these times of fiscal correctness, it is heresy to call for expansionary fiscal policy to revive the economy. Yet sound economic principles call for such a prescription, even if it sounds like the wild cry of a slump-struck corporation bothered only about its bottom line.
Which of the following, if true, would most support the author’s views on fiscal policy?
A. In the past, most governments have adopted a conservative attitude in the face of an economic slump.
B. An expansionary fiscal policy would be welcomed by companies that have been overwhelmed by the slump.
C. An expansionary fiscal policy leading to more expenditure would encourage the revival of a depressed economy
D. Sound economic principles suggest that to increase fiscal expenditure during a depression would raise the import bill and adversely affect the trade deficit.
E. Fiscal policy is often used to provoke a reaction in the market.
Which of the following, if true, would most support the author’s views on fiscal policy?
A. In the past, most governments have adopted a conservative attitude in the face of an economic slump.
B. An expansionary fiscal policy would be welcomed by companies that have been overwhelmed by the slump.
C. An expansionary fiscal policy leading to more expenditure would encourage the revival of a depressed economy
D. Sound economic principles suggest that to increase fiscal expenditure during a depression would raise the import bill and adversely affect the trade deficit.
E. Fiscal policy is often used to provoke a reaction in the market.
14 Jul 2014, 02:17
Kudos
Bookmarks
Ah, Pretty hard question. Took over a min and half to solve.
Here, based on the 1st line of the argument by the Columnist. He/She definitely agree for the expansionary fiscal policy.
A. In the past, most governments have adopted a conservative attitude in the face of an economic slump- It doesn't strengthen the columnist point- So eliminate- Irrelevant
B. An expansionary fiscal policy would be welcomed by companies that have been overwhelmed by the slump- If we carefully look at this statement, mere restatement of the argument.
C. An expansionary fiscal policy leading to more expenditure would encourage the revival of a depressed economy- Provides the exact support needed for the Columnist argument- So hold.
D. Sound economic principles suggest that to increase fiscal expenditure during a depression would raise the import bill and adversely affect the trade deficit.- Actually weakens the columnist conclusion.
E. Fiscal policy is often used to provoke a reaction in the market- Fails to provide support for the expansionary fiscal policy. So eliminate
So the Answer is C. Kudos for the question.
Here, based on the 1st line of the argument by the Columnist. He/She definitely agree for the expansionary fiscal policy.
A. In the past, most governments have adopted a conservative attitude in the face of an economic slump- It doesn't strengthen the columnist point- So eliminate- Irrelevant
B. An expansionary fiscal policy would be welcomed by companies that have been overwhelmed by the slump- If we carefully look at this statement, mere restatement of the argument.
C. An expansionary fiscal policy leading to more expenditure would encourage the revival of a depressed economy- Provides the exact support needed for the Columnist argument- So hold.
D. Sound economic principles suggest that to increase fiscal expenditure during a depression would raise the import bill and adversely affect the trade deficit.- Actually weakens the columnist conclusion.
E. Fiscal policy is often used to provoke a reaction in the market- Fails to provide support for the expansionary fiscal policy. So eliminate
So the Answer is C. Kudos for the question.
14 Jul 2014, 02:18
Kudos
Bookmarks
Gnpth
It was a good one that's the reason i shared. Thanks!
