An example of a discretionary fiscal policy is when
A) tax receipts fall as incomes fall.
B) unemployment compensation payments rise with unemployment rates.
C) food stamp payments rise when the economy is in a recession.
D) Congress passes a law that raises personal marginal tax rates.

Question

Quizplus · Accepted Answer

Discretionary fiscal policy involves deliberate actions by the government, such as passing new laws to change tax rates or government spending.

An Example of a Discretionary Fiscal Policy Is When