Discretionary policy deficits are associated with _____
A) increases in national saving.
B) higher prices.
C) lower transfer payments.
D) lower interest rates.
E) higher taxes.

Question

Quizplus · Accepted Answer

Discretionary policy deficits are associated with higher prices because a discretionary fiscal policy involves the government increasing spending or decreasing taxes to stimulate demand, which can lead to inflationary pressures in the economy.

Discretionary Policy Deficits Are Associated with _____