The federal budget acts as an automatic economic stabilizer because the President has the power to authorize additional discretionary spending.

Question

Quizplus · Accepted Answer

The statement is false. The federal budget acts as an automatic stabilizer through various programs such as unemployment insurance and food stamps, which automatically expand during economic downturns. The President does not have the power to unilaterally authorize additional discretionary spending, as all spending must be approved by Congress.

The Federal Budget Acts as an Automatic Economic Stabilizer Because