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I do not understand this question at all, please assist: Under balanced budget laws, fiscal policy a.will be acyclical. b.will be pro-cyclical. c.will be counter-cyclical.
I do not understand this question at all, please assist:
Under balanced budget laws, fiscal policy
a.will be acyclical.
b.will be pro-cyclical.
c.will be counter-cyclical.
d.may be counter-cyclical if the country has a currency board and pro-cyclical otherwise.
e.may be counter-cyclical if the country has an independent central bank and pro-cyclical otherwise.
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