Discretionary Fiscal Policy

question 238

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 favoured by monetarists.
• D) is favoured by Keynesians.

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Definitions:

NSF Check

A check that has been returned by the bank because the account on which it was drawn did not have sufficient funds.

Deposits In Transit

Funds that have been sent to a bank but not yet recorded in the bank's records, resulting in a discrepancy between the company's cash records and bank statement.

Bank Service Charge

A fee charged by a bank to a customer for account maintenance or other banking services.

NSF

An acronym for Non-Sufficient Funds, referring to a situation where a bank account does not have enough money to cover a presented check or withdrawal.