Multiple Choice
Discretionary fiscal policy will stabilize the economy most when:
A) deficits are incurred during recessions and surpluses during inflations.
B) the budget is balanced each year.
C) deficits are incurred during inflations and surpluses during recessions.
D) budget surpluses are continuously incurre
Correct Answer:

Verified
Correct Answer:
Verified
Q11: A cyclically adjusted budget deficit is also
Q12: The "political business cycle" refers to the
Q13: Which policy to finance the public debt
Q14: The lag between the time the need
Q15: A public debt which is owed to
Q17: A specific reduction in government spending will
Q18: If the MPS in an economy is
Q19: You are given the following information about
Q20: The crowding-out effect refers to the possibility
Q21: The higher domestic interest rate resulting from