Recall the Application about Fed Chairman Ben Bernanke's views on how to fight a liquidity trap to answer the following question(s).
-Suppose a politician stimulates the economy before an election to improve the chances she is reelected. This is known as
A) an election cycle.
B) a political business cycle.
C) lobbying.
D) campaigning.

Question

Quizplus · Accepted Answer

This situation is known as a political business cycle, where politicians manipulate economic policy to benefit their electoral prospects. They may use expansionary fiscal or monetary policy to stimulate the economy and increase their chances of reelection.

Recall the Application About Fed Chairman Ben Bernanke's Views on How