Incrementalism may be an efficient way to craft a budget because _____
a. it minimizes government size
b. it is difficult to measure the benefits of many government programs
c. it removes special interest influence from the budget process
d. it requires that programs be cost-effective to continue
b
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During a recession, unemployment compensation payments increase without the need for any government action. This increase is an example of
A) discretionary monetary policy. B) automatic monetary policy. C) automatic fiscal policy. D) discretionary fiscal policy. E) government expenditure, but it is not an example of either discretionary or automatic policy.
The Federal Reserve Bank attempted to deal with the sluggish aggregate demand that followed the housing market crash and subsequent financial crisis through:
A. contractionary monetary policy. B. expansionary fiscal policy. C. expansionary monetary policy. D. contractionary fiscal policy.