68 245
Assignments Done
99%
Successfully Done
In November 2018

Answer to Question #76069 in Macroeconomics for rajvinder

Question #76069
Describe a discretionary fiscal stimulus package that could be used that would not bring an increase in the budget deficit.

A discretionary fiscal stimulation package that would avoid a budget deficit is a simultaneous and equal​ ______.    

A.
increase in government expenditure and an increase in taxes
B.
increase in transfer payments and a decrease in taxes
C.
decrease in transfer payments and increase in the quantity of money
D.
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​ ______.

A.
​law-making lag
B.
recognition lag
C.
impact lag
D.
business cycle lag
Expert's answer
1
A. increase in government expenditure and an increase in taxes
2
D. business cycle lag

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions