Multiple Choice
In practice, discretionary fiscal policy has
A) been unsuccessful in offsetting recessions or booms.
B) been successful in offsetting booms but not recessions.
C) been successful in offsetting recessions and booms.
D) been successful in offsetting recessions but not booms.
E) always had a very adverse effect on the economy.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Suppose the economy is in a boom
Q3: Because the government is the official issuer
Q4: Most of the spending in the enacted
Q5: Explain the major trends in the debt
Q6: Supporters of policy rules argue that automatic
Q7: To determine the size of the automatic
Q8: Most state and local government expenditures are
Q9: Policy rules tend to make the budget
Q10: The third substantial piece of fiscal policy
Q11: If taxes became more progressive, we would