The difference between automatic fiscal policy and discretionary fiscal policy is that
A) the President initiates discretionary fiscal policy.
B) Congress initiates automatic fiscal policy.
C) Congress must pass laws implementing discretionary fiscal policy.
D) the President has nothing to do with discretionary fiscal policy.

Question

Quizplus · Accepted Answer

Discretionary fiscal policy requires new laws or changes to existing laws, which must be passed by Congress, to be implemented. Automatic fiscal policy, on the other hand, occurs without the need for new legislation, as it is built into the existing legal framework.

The Difference Between Automatic Fiscal Policy and Discretionary Fiscal Policy