Discretionary fiscal policy is the

Question

Quizplus · Accepted Answer

Discretionary fiscal policy refers to the use of government spending and taxation to influence macroeconomic goals such as economic growth, inflation, and unemployment. It is an active approach that involves deliberate changes in government policy. Option B refers to monetary policy, not fiscal policy. Option C is incorrect as discretionary fiscal policy involves both government spending and taxation. Option D is incorrect as discretionary fiscal policy involves both taxation and government spending.

Discretionary Fiscal Policy Is the