The stimulus package passed by Congress in 2009 is an example of
A) monetary policy
B) automatic fiscal policy
C) discretionary fiscal policy
D) increased taxation

Question

Quizplus · Accepted Answer

The stimulus package passed by Congress in 2009 was a deliberate and proactive attempt to stimulate the economy through government spending, making it an example of discretionary fiscal policy. Monetary policy refers to actions taken by a central bank to manage the money supply and interest rates, and automatic fiscal policy refers to changes in government spending or taxation that occur automatically as a result of changes in economic conditions. Increased taxation would involve raising taxes, while the stimulus package involved increased government spending.

The Stimulus Package Passed by Congress in 2009 Is an Example