
Discretionary fiscal policy is defined as the
A) deliberate change in tax laws and government spending to change equilibrium income.
B) deliberate manipulation of the money supply to expand the economy.
C) arbitrary fluctuation in tax laws and budget requirements.
D) automatic change in certain fiscal instruments when real GDP changes.
E) policy action taken by Congress to reduce the federal budget deficit.
Correct Answer:
Verified
Q29: The federal budget deficit as a percentage
Q30: Crowding out refers to a(n)
A) increase in
Q31: Budget deficits tend to grow during recessions
Q32: An automatic stabilizer is a(n)
A) change in
Q33: Fiscal policy in the United States is
Q35: An increase in government spending of $100
Q36: Economists define two components of fiscal policy:
A)
Q37: If fewer businesses offered new bonds to
Q38: The ratio of U.S. government spending as
Q39: Before the Depression, the federal government was
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