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The Distinction Between Discretionary Fiscal Policy and the Use of Automatic

Question 62

Multiple Choice

The distinction between discretionary fiscal policy and the use of automatic stabilizers is that


A) only discretionary fiscal policy can stimulate the economy.
B) only automatic stabilizers can stimulate the economy.
C) discretionary fiscal policy, once adopted, is built into the structure of the economy.
D) automatic stabilizers, once adopted, are built into the structure of the economy.

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