A change in government spending and/or taxes as the result of legislation is called:
A) open market operations of the Federal Reserve.
B) discretionary fiscal policy.
C) balanced budget operations.
D) discretionary monetary policy.

Question

Quizplus · Accepted Answer

Discretionary fiscal policy refers to changes in government spending and taxes, as a result of legislation, aimed at influencing the overall economy. Option A refers to actions taken by the Federal Reserve to influence monetary policy, while C refers to a budget in which revenues equal expenditures. D refers to actions taken by the Federal Reserve to influence monetary policy.

A Change in Government Spending And/or Taxes as the Result