Answer:
1. b) Policy guides decision making. Laws causes punishment.
2. a) Mandatory Spending
3. b) Deficits is the accumulates of debts.
4) d) Recession is when the economy experiences contraction for 6 months or more; Depression lasts multiple years.
5) c) to encourage people to borrow less money: to slow down the economy.
Explanation:
A rule of law is a practice or norm that all members of society are expected to follow. A company or institution's choices are guided by policies, while laws are utilized to enforce the rule of law.
In contrast to recessions, depressions are long-term downturns in the business cycle that may lead to a wide range of economic issues.
The Fed funds and discount rates adjust to balance the supply of, and demand for, currency reserves. So, if the fed higher the discount rate, then the balance of the supply and the demand will also be higher.
