It is impossible for the budget deficit to change unless there is a change in discretionary fiscal policy.

Question

Quizplus · Accepted Answer

The budget deficit can change due to various factors such as changes in economic conditions, changes in automatic stabilizers (e.g. taxes and transfer payments), and changes in non-discretionary spending (e.g. interest payments on debt). Discretionary fiscal policy (e.g. changes in government spending or taxes) can also affect the budget deficit, but it is not the only factor.

It Is Impossible for the Budget Deficit to Change Unless