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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