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

Question

Quizplus · Accepted Answer

Discretionary fiscal policy requires legislative action by Congress to change tax rates or government spending levels, unlike automatic stabilizers that kick in without specific legislative action.

The Difference Between Automatic Fiscal Policy and Discretionary Fiscal Policy