What presents the greatest challenge to a nimble fiscal policy in the United States?
a. the centrist nature of American politics
b. the ideological nature of American politics
c. the checks and balances of the American political system
d. the nonpartisan approach to American economic policy
Question 2
In what way do changes to the interest rate affect the American economy?
a. They always lead to lower rates of marginal taxes.
b. They can lead to higher unemployment in years of budget deficits.
c. They can spur economic growth by increasing the cost of money for business.
d. They can spur economic growth by increasing the available money supply.
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