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One Advantage of Automatic Fiscal Policy Over Discretionary Fiscal Policy

Question 149

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.

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