An example of discretionary fiscal policy would be

Question

Quizplus · Accepted Answer

Discretionary fiscal policy refers to intentional changes in government spending or taxation aimed at stabilizing the economy. Option C - a federal jobs program adopted to stimulate consumption - is an example of discretionary fiscal policy as the government is intentionally increasing its spending in order to boost employment and ultimately, consumer spending. Options A and B are examples of automatic stabilizers as they do not require intentional changes in government policy, but rather they automatically adjust during economic fluctuations. Option D is an example of monetary policy, which is not considered discretionary fiscal policy.

An Example of Discretionary Fiscal Policy Would Be