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.

---

Definitions:

Traditional Entrepreneurs

Individuals who start businesses with the intention to generate profits, often focused on growth, scalability, and market share.

Identify Opportunities

The process of recognizing and evaluating potential pathways or strategies that could lead to growth, development, or competitive advantage.

Wicked Problem

A complex issue that is difficult to define and solve because of incomplete, contradictory, and changing requirements.

Childhood Mortality

refers to the death of infants and children under the age of five.