The Distinction Between Discretionary Fiscal Policy and the Use of Automatic

question 62

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.

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Definitions:

Discretion

The freedom to decide what should be done in a particular situation, often given to officials or agencies in executing laws and policies.

Treaty Ratification

The formal approval process of a treaty by a country's legislative body, making the treaty legally binding.

Senate Vote

A formal expression of opinion or choice, either positive or negative, made by an individual senator or the collective senate body in legislative decision-making.

Signing Statements

Written comments issued by the President of the United States upon signing a bill into law, which may outline interpretation or express concerns about parts of the legislation.