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One Strength of the Use of Discretionary Fiscal Policy Is

question 173

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One strength of the use of discretionary fiscal policy is the timing lags.


Definitions:

Supply Of Loanable Funds Curve

A graphical representation showing the relationship between the interest rate and the total amount of savings available for lending in the financial market.

Demand For Loanable Funds Curve

The demand for loanable funds curve illustrates the relationship between the interest rate and the quantity of loanable funds demanded by borrowers, showing how borrowing can decrease as interest rates rise.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, usually on an annual basis.

Loanable Funds

The funds in financial institutions that are available for borrowing.

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