One Advantage of Automatic Fiscal Policy Over Discretionary Fiscal Policy

question 91

Multiple Choice

One advantage of automatic fiscal policy over discretionary fiscal policy is that automatic fiscal policy:

• A) Makes the actual budget a better reflection of the condition of the economy than the Standardized budget
• B) Does not produce a cyclical deficit as discretionary policy does
• C) Is not subject to the timing problems of discretionary policy
• D) Has a greater multiplier effect than discretionary policy

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Definitions:

Promotional Mix

The combination of marketing strategies and tactics used by a company to promote its products or services, including advertising, sales promotions, public relations, and direct marketing.

Inspiration

The process of being mentally stimulated to do or feel something, especially to do something creative or achieve goals.

Observation

A method of collecting data and insights by carefully monitoring behaviors or phenomena in natural or controlled environments.

Idea

A thought or suggestion as to a possible course of action, plan, or concept.