The stimulus package passed by Congress in 2009 is an example of
A) automatic fiscal policy
B) discretionary fiscal policy
C) monetary policy
D) increased taxation

Question

Quizplus · Accepted Answer

The stimulus package passed by Congress in 2009 is an example of discretionary fiscal policy. This is because Congress made a conscious decision to pass legislation aimed at stimulating the economy through increased government spending and tax cuts. Automatic fiscal policy refers to changes in government spending or taxation that are triggered automatically in response to changes in the economy, which was not the case with the 2009 stimulus package. Monetary policy refers to actions taken by the Federal Reserve to manipulate the money supply and interest rates, and increased taxation was not the primary focus of the stimulus package.

The Stimulus Package Passed by Congress in 2009 Is an Example