Discretionary fiscal policy refers to
A) deliberate government efforts to stabilize the economy through government spending and taxes.
B) the use of automatic stabilizers and intervention policies to stabilize the economy.
C) any government policy that requires a lag period of at least three months.
D) the deliberate use of government spending and taxes to complement the effects of monetary policy in an effort to stabilize the economy.
Correct Answer:
Verified
Q36: If the federal budget is initially balanced
Q37: The sum of all past federal deficits
Q38: Suppose a country has a national debt
Q39: The use of government expenditures and taxes
Q40: Personal income taxes and transfer payments
A) acts
Q42: Changes in expenditures and taxes that occur
Q43: Contractionary fiscal policy includes
A) increasing taxes and
Q44: During a contraction,
A) higher income tax revenues
Q45: An expansionary fiscal policy
I. includes an increase
Q46: In general, personal income taxes
A) rise automatically
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