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

A discretionary fiscal stimulation package that would avoid a budget deficit is a simultaneous and equal increase in government expenditure and increase in taxes.

Option A

Explanation:

A discretionary fiscal stimulus bundle is a bundle of monetary estimates set up together by a legislature to animate a flopping economy. The goal of an improvement bundle is to revive the economy and anticipate or turn around a downturn by boosting work and spending.  

The hypothesis behind the value of a boost bundle is established in Keynesian financial matters, which contends that the effect of a downturn can be decreased with expanded government spending.  

Upgrade bundle is various motivations and assessment refunds offered by an administration to support spending in an offer to haul a nation out of a downturn or to anticipate a monetary lull. An improvement bundle can either be as a financial upgrade or a monetary boost.

A money related boost includes slicing loan fees to animate the economy. At the point when financing costs are cut, there is progressively impetus for individuals to acquire as the expense of getting is diminished.

answer: b. false

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