A fiscal rule which involves a ceiling to government borrowing as a percentage of GDP
A) prohibits the use of contractionary fiscal policy when the economy is already at the ceiling.
B) prohibits the use of expansionary fiscal policy when the economy is already at the ceiling.
C) prevents the use of discretionary fiscal policy at any time as long as the government abides by the rule.
D) B and C
Correct Answer:
Verified
Q28: If the government spending multiplier is 5,
Q29: If government spending is increased by £500
Q30: A rise in government spending of £x
Q31: Which of the following is not a
Q32: Discretionary fiscal policy may have undesirable effects.
Q34: Carrying out fiscal policy is a political
Q35: The economy is experiencing both low output
Q36: Which of the following statements is a
Q37: The belief that the money supply should
Q38: The belief that inflation is caused by
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents