What is the distinction between automatic and discretionary fiscal policy? automatic fiscal policy is discretionary fiscal policy is . a. the multiplier effect that follows an increase in government expenditure; initiated by an act of congress b. triggered by the state of the economy with no action by government; initiated by an act of congress c. the multiplier effect that follows an increase in government expenditure; initiated by the president of the united states d. triggered by the state of the economy with no action by government; initiated by the president of the united states

The correct answer is option b.

Explanation:

An automatic fiscal policy is a policy that corrects the fluctuations in the economy through its normal working without any intervention by the government.

A discretionary fiscal policy, on the other hand, is planned and excercised by the government.

It works through increase in taxes or reduction in the government spending without government.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

answer; ( prices are sticky);