Question

Based on what Davidson says, how would you describe the term 'fiscal cliff'?

Answer 1

A financial precipice is a mix of lapsing tax breaks and no matter how you look at it government spending slices booked to end up plainly compelling Dec. 31, 2012. The thought behind the financial bluff was that if the national government enabled these two occasions to continue as arranged, they would detrimentally affect an effectively insecure economy, maybe sending it once more into an authority recession as it cut family unit earnings expanded unemployment rates and undermined purchaser and speculator certainty

Answer 2

The definition of fiscal cliff is: a situation in which a particular set of financial factors causes or threatens sudden and severe economic decline.