Multiple Choice
One advantage of automatic fiscal policy over discretionary fiscal policy is that automatic fiscal policy
A) makes the actual budget a better reflection of the condition of the economy than the standardized budget.
B) does not produce a cyclical deficit, as discretionary policy does.
C) is not subject to the timing problems of discretionary policy.
D) has a greater multiplier effect than discretionary policy.
Correct Answer:

Verified
Correct Answer:
Verified
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