Which of the following is an example of a discretionary fiscal policy?
A) when there is a change in the money supply
B) when interest rates increase or decrease
C) when a plan works automatically without public announcement or plan
D) when there is an intentional change in taxation or government spending

Question

Which of the following is an example of a discretionary fiscal policy?  
A) when there is a change in the money supply 
B) when interest rates increase or decrease 
C) when a plan works automatically without public announcement or plan 
D) when there is an intentional change in taxation or government spending

Quizplus · Accepted Answer

A discretionary fiscal policy involves intentional changes in taxation or government spending by policymakers to stabilize the economy. The other options do not involve intentional government intervention.

Which of the Following Is an Example of a Discretionary