The Distinction Between Discretionary Fiscal Policy and the Use of Automatic

question 145

Multiple Choice

The distinction between discretionary fiscal policy and the use of automatic stabilizers is that:

• A)only discretionary fiscal policy can stimulate the economy.
• B)only automatic stabilizers can stimulate the economy.
• C)discretionary fiscal policy,once adopted,is built into the structure of the economy.
• D)automatic stabilizers,once adopted,are built into the structure of the economy.
• E)only discretionary fiscal policy can be used by the federal government.

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Definitions:

Agonist

A chemical or drug that binds to receptors in the brain and causes a reaction similar to that of a naturally occurring neurotransmitter.

Excitatory Signal

A type of neurotransmitter-induced signal in the nervous system that increases the likelihood of a neuron firing an action potential.

Action Potential

A sudden increase and subsequent decrease in the voltage across a cell membrane resulting from the movement of charged particles.

Neural Communication

The process by which neurons transmit signals to each other through synapses, using both electrical and chemical means.