In a booming economy, discretionary fiscal policy:
A. can be added to the automatic stabilizers effects of policies already in place.
B. often acts counter to the automatic stabilizers that already exist.
C. removes the effect of the automatic stabilizers that already are present.
D. All of these are true.
A. can be added to the automatic stabilizers effects of policies already in place.
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The combined effects of a fiscal contraction and a monetary expansion are
a. higher real interest rates. b. exchange rate depreciation. c. increased current account deficit. d. All of the above are correct.
Which of the following events must result in a higher price in the market for cigars?
a. Demand for cigars increases, and supply of cigars decreases. b. Demand for cigars and supply of cigars both decrease. c. Demand for cigars decreases, and supply of cigars increases. d. Demand for cigars and supply of cigars both increase