The fiscal compact has a key feature to control
A) Cyclical deficit
B) Structural deficit
C) Interest rates
D) The amount a country can increase taxes

Question

Quizplus · Accepted Answer

The fiscal compact aims to control the structural deficit of member countries, which refers to the deficit that persists even in times of economic growth and low unemployment. This is considered a more significant issue than cyclical deficits, which are caused by economic downturns and can be more easily addressed through government stimulus measures. The fiscal compact does not directly control interest rates or the amount a country can increase taxes.

The Fiscal Compact Has a Key Feature to Control