Discretionary Fiscal Policy

question 213

Multiple Choice

Discretionary fiscal policy:

• A)is not subject to lags and therefore is effective at controlling business cycles.
• B)refers to changes in the money supply used to smooth out the economy's ups and downs.
• C)is favored by monetarists.
• D)is favored by Keynesians.

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Definitions:

Activity Base

A measure used for allocating costs to cost objects based on the number of transactions or events that take place in the process of providing a service or manufacturing a product.