In practice, discretionary fiscal policy has
A)been unsuccessful in offsetting recessions or booms.
B)been successful in offsetting booms but not recessions.
C)been successful in offsetting recessions and booms.
D)been successful in offsetting recessions but not booms.
E)always had a very adverse effect on the economy.

Question

Quizplus · Accepted Answer

Discretionary fiscal policy, which involves government actions like changing tax rates and government spending, has faced challenges in effectively offsetting recessions or booms due to timing issues, political constraints, and difficulties in accurately forecasting economic conditions.

In Practice, Discretionary Fiscal Policy Has