A political leader suggesting that the country "stay the course" in the face of an economic downturn because things will be potentially made worse if tax and spending policies are adopted, is, by implication suggesting ____ is better.

Question

Quizplus · Accepted Answer

"Stay the course" suggests continuing current policies rather than making changes. Both discretionary fiscal policy and regulatory changes involve making policy changes and therefore would not be implied as better options. Trade policy may or may not be relevant to the economic downturn, but is not mentioned specifically in the given statement. Nondiscretionary fiscal policy, which refers to automatic stabilizers such as unemployment insurance and progressive income taxes, would be consistent with staying the course and not making any new policy changes.

A Political Leader Suggesting That the Country "Stay the Course