When Policy Makers Make a Deliberate Fiscal Policy Decision

question 212

Multiple Choice

When policy makers make a deliberate fiscal policy decision:

• A)it is called discretionary fiscal policy.
• B)it is an example of an automatic stabilizer.
• C)no lag effects will result.
• D)the value of the multiplier will be reduced.

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Definitions:

Deposit Slip

A paper that goes with a bank deposit, listing the cash and/or checks amount being put into the bank.

Customer

An individual or entity that purchases goods or services from a business.

Bank Statement

A document issued by a bank that summarizes an account holder's transactions and financial activity over a specified period.

Checking Account

A bank account that allows for numerous withdrawals and deposits, intended primarily for daily transactions.