"Discretionary fiscal policy is a fiscal action initiated by an act of the Federal Reserve, while automatic fiscal policy is a fiscal action induced by the state of the economy." Is the previous statement correct or incorrect? Explain your answe
What will be an ideal response?
The statement is incorrect. The statement is correct about automatic fiscal policy. But it is incorrect about discretionary fiscal policy because discretionary fiscal policy is not initiated by the Federal Reserve—it is initiated by an act of Congress.
You might also like to view...
If the current account balance is $235 billion and U.S. official reserves increased by $35 billion, what is the official settlements account balance and the capital account balance?
What will be an ideal response?
The "law of demand" indicates that if SIUC increases the price of tuition, all other things remaining the same Question 29 options:
A. the quantity of classes demanded will decrease at SIUC B. the demand for classes will decrease at SIUC C. the demand for classes will increase at SIUC D. the quantity of classes demanded will increase at SIUC