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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Definitions:

Repressive

Pertaining to the act of restraining, preventing, or inhibiting expressions, thoughts, or behaviors.

Nominal

A term referring to values or categories that are names or labels without a natural order or ranking.

Meditation

A practice of mindfulness or concentration to achieve a mentally clear and emotionally calm state.

Physiological Arousal

A physical state of heightened alertness and readiness, typically involving increased heart rate, blood pressure, and sensory alertness.