Discretionary Fiscal Policy

question 51

Multiple Choice

Discretionary fiscal policy:

• A) can magnify the automatic stabilization effects of existing policies.
• B) only magnifies the automatic stabilizer effects of policies that stimulate the economy.
• C) often counters the effect of automatic stabilizers that already exist.
• D) None of these are true.

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Definitions:

Fair Value

The amount expected to be gained from the sale of an asset or expended in relocating a liability during a planned interaction with market entities at the time of assessment.

Heifers

Young female cattle that have not yet born a calf, often raised for beef or kept for breeding purposes.

AASB 116

This Australian Accounting Standards Board standard pertains to Property, Plant, and Equipment, covering its recognition, measurement, and disclosure.

IAS 16

International Accounting Standard that prescribes the accounting treatment for property, plant, and equipment.