Which one of the following is TRUE?
A) To the extent that Congress relies on discretionary fiscal policy as a tool of stabilization, it must be willing to run budget deficits in some years.
B) To the extent that Congress relies on discretionary fiscal policy as a tool of stabilization, it will be able to offset fluctuations in business activity without any time lags.
C) Automatic stabilizers are used to stimulate aggregate supply, whereas discretionary fiscal policy is used to stimulate aggregate demand.
D) Automatic stabilizers are used to stimulate aggregate demand, whereas discretionary fiscal policy is used to stimulate aggregate supply.
Correct Answer:
Verified
Q64: The time lags encountered in implementing fiscal
Q65: To the extent that the crowding out
Q66: What is the debt ceiling?
A) The total
Q67: Which one of the following is TRUE?
A)
Q68: The federal government budget deficit is
A) the
Q70: Which one of the following is TRUE?
A)
Q71: Which one of the following is FALSE?
A)
Q72: Which one of the following is FALSE?
A)
Q73: Discretionary _ policy uses changes in taxes
Q74: Increases in aggregate demand can boost real
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