Answer to Question #76069 in Macroeconomics for rajvinder
A discretionary fiscal stimulation package that would avoid a budget deficit is a simultaneous and equal ______.
increase in government expenditure and an increase in taxes
increase in transfer payments and a decrease in taxes
decrease in transfer payments and increase in the quantity of money
decrease in government expenditure and taxes
Explain the risks of discretionary fiscal policy in this situation
Discretionary fiscal policy is risky because it is hampered by all of the following lags except ______.
business cycle lag
A. increase in government expenditure and an increase in taxes
D. business cycle lag
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