Solved

Which Argument Was Made in Favour of Using Discretionary Fiscal

Question 247

Multiple Choice

Which argument was made in favour of using discretionary fiscal policy in fighting the Great Recession?


A) Monetary policy could not be effective,since interest rates were near zero.
B) If taxes were increased,the budget could be balanced.
C) If government spending decreased,the budget surplus would increase.
D) The lags associated with monetary policy would be destabilizing.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions