A fiscal action that is initiated by an act of Congress is called
A) automatic fiscal policy.
B) the government expenditure multiplier.
C) generational fiscal policy.
D) discretionary fiscal policy.

Question

Quizplus · Accepted Answer

A fiscal action that is initiated by an act of Congress is known as discretionary fiscal policy. This type of fiscal policy refers to deliberate changes in government spending or taxation that are intended to achieve specific macroeconomic objectives such as stabilizing the economy during a recession or reducing inflationary pressures during an economic expansion. Discretionary fiscal policy requires legislative action and is typically implemented through changes in the federal budget.

A Fiscal Action That Is Initiated by an Act of Congress