Discretionary Fiscal Policy differs from Nondiscretionary Fiscal Policy in that
A. the former deals with government spending, and the latter deals with tax policy.
B. the former is chosen by Congress, while the latter is chosen by the President.
C. the former often takes years to enact, while the latter takes effect automatically.
D. the former is always stabilizing, while the latter is never stabilizing.
Answer: C
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An asset that can be easily disposed of without high transactions costs and with relative certainty as to its value is
A) solid. B) liquid. C) M1. D) M2.
One of the principal factors behind the U.S. trade deficits of the 1990s has been
a. slow growth and recession in many important trading partners. b. rapid growth and inflation in many important trading partners. c. significant depreciation of the dollar. d. rising real interest rates in the United States.
A ________ income tax means that those with a higher income pay the same percentage of their income in taxes as low-income people.
A. regressive B. progressive C. consumption-based D. proportional
Refer to the graph below for a pure monopoly. If the government regulated the monopoly and made it produce the level of output that would achieve allocative efficiency, what price and quantity levels would we observe in the short run?
A. P1 and Q1
B. P2 and Q3
C. P3 and Q2
D. P4 and Q1