The distinction between discretionary fiscal policy and the use of automatic stabilizers is that:
a. only discretionary fiscal policy can stimulate the economy
b. only automatic stabilizers can stimulate the economy.
c. discretionary fiscal policy, once adopted, is built into the structure of the economy.
d. automatic stabilizers, once adopted, are built into the structure of the economy.
e. only discretionary fiscal policy can be used by the federal government.
d
You might also like to view...
Which function of money allows consumers who are searching for a new car to compare the costs of different optional features of different cars in order to determine if they want the features or not?
a) Medium of exchange b) Unit of account c) Store of value d) Barter
A government debt larger than the economy's GDP ________
A) is an example of debt repudiation B) is a predictor of future large budget deficits C) is a consequence of debt intolerance D) is a possible consequence of tax smoothing