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

Question

Quizplus · Accepted Answer

Discretionary fiscal policy refers to fiscal actions, such as changes in taxation or government spending, initiated by an act of Congress to influence the economy. These actions are deliberate and require legislative approval, distinguishing them from automatic fiscal policies that kick in without specific legislative action.

A Fiscal Action That Is Initiated by an Act of Congress