Discretionary fiscal policy is a policy that _____
A) is developed in secret.
B) applies to some states and not all states in an economy.
C) applies to only some specific industries in an economy.
D) works automatically without a public announcement or plan.
E) is an intentional change in taxation or government spending.

Question

Quizplus · Accepted Answer

Discretionary fiscal policy refers to intentional and deliberate changes made by the government to its taxation policies or its spending. This could include increased government spending or reduced taxes to stimulate economic growth or decreased spending and increased taxes to combat inflation. This policy is often announced publicly and implemented through legislation or executive action.

Discretionary Fiscal Policy Is a Policy That _____