All of the following are reasons why it is difficult to put balanced fiscal policy into practice EXCEPT...
a. the need for discretionary spending.
b. political pressures for reelection.
c. difficulty of predicting future economic performance.
d. difficulty of coordinating the needs of many different agencies.

An example of expansionary fiscal policy would be...
a. cutting taxes.
b. cutting government spending.
c. cutting production of consumer goods.
d. cutting prices of consumer goods.

Respuesta :

Answer:

The answer is A : the need for discretionary spending.

Explanation:

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The need for discretionary spending is not the reason behind the difficulty to put balanced fiscal policy into practice.

The cutting of taxes is an example of expansionary fiscal policy.

Here, discretionary spending implies spending that is incurred while execution of bills and laws such as in education, defense, and foreign aid. Thus, it maintains the balance of spending and revenue derivation by the government.

The fiscal policy determines the revenue and expenditure structure of the government, which helps it to design its tax and spending policies. Thus, when taxes are reduced and spending is increased then it represents the expansionary fiscal policy.

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