Actual federal budgets are not an accurate measure of discretionary fiscal policy because:
a. it is difficult to measure government spending accurately
b. people cheat on their income taxes.
c. budget deficits increase during expansions even without changes in fiscal policy.
d. budget deficits increase during recessions even without changes in fiscal policy.
e. earlier administrations may have contributed to current budget deficits.
d
You might also like to view...
Which of the following is a drawback to having a common currency across countries, as in the European Union?
A) Having a common currency implies that the prices of goods across countries must always be the same, regardless of consumer preferences for goods across countries. B) A common currency increases barriers to trade across countries, reducing opportunities for economic growth. C) With a common currency, individual countries are no longer able to run independent monetary policies. D) None of the above is a drawback to a common currency.
A demand curve for a Giffen good would be
A) upward sloping. B) downward sloping. C) horizontal. D) vertical.
In which of the following externality situations would it be most likely that voluntary agreements could be used to internalize an externality?
A) littering on highways B) overharvesting of alligators in Louisiana C) poaching of elephants in Africa D) trees of one neighbor blocking a view of another
The Sherman Antitrust Act was passed to
A. protect the monopoly profits of firms. B. control the growth of monopolies in the U.S. C. prevent market price from equaling marginal cost. D. protect companies from foreign competition.