One advantage of automatic stabilizers over discretionary fiscal policy is that automatic stabilizers rev: 06_13_2018 Multiple Choice make the actual budget a better reflection of the condition of the economy than the standardized budget. do not produce a cyclical deficit as discretionary fiscal policy does. are not subject to the timing problems of discretionary fiscal policy. have a greater multiplier effect than discretionary fiscal policy.

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Business

Ximena Padilla

12 May, 19:07

One advantage of automatic stabilizers over discretionary fiscal policy is that automatic stabilizers rev: 06_13_2018 Multiple Choice make the actual budget a better reflection of the condition of the economy than the standardized budget. do not produce a cyclical deficit as discretionary fiscal policy does. are not subject to the timing problems of discretionary fiscal policy. have a greater multiplier effect than discretionary fiscal policy.

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Answers (2)

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Mariana Lynn · Answer 1

C) Are not subject to the timing problem of discretionary fiscal policy

Malik Rollins · Answer 2

Automatic stabilizers are financial strategy intended to counterbalance the variances in the national economy with no mediation by the administration. In the event of optional arrangement, the administration initially understands that there is an issue and afterwards makes a move to balance the variance. This makes a hole in the planning of when the issue really emerges and when the strategy move is made. The automatic stabilizers don't confront this issue as they do not need government mediation. Along these lines the right choice is

C) are not subject to the timing problem of discretionary fiscal policy.