Which of the Following Is a Problem with Discretionary Fiscal

question 34

Multiple Choice

Which of the following is a problem with discretionary fiscal policy as an economic stabilization tool?

• A) Discretionary changes in fiscal policy can be easily anticipated by private decision makers.
• B) It is difficult to properly time discretionary changes in fiscal policy.
• C) Discretionary fiscal policy is only effective during a recession.
• D) Discretionary fiscal policy is only effective during an economic boom.

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Definitions:

Afferent Vessels

Blood vessels that carry blood toward a particular organ or tissue, often referring to the vessels entering an organ.

Efferent Vessels

Blood vessels or lymphatic vessels that carry fluid away from an organ or tissue, as opposed to afferent vessels that bring fluid to it.

Lymphatic Vessels

A network of conduits through which lymph, containing immune cells and waste, is transported.

Secondary Antibody

An antibody that binds to a primary antibody as part of a detection or purification method in biochemistry or microscopy.