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Discretionary Fiscal Policy Is When

Question 2

Multiple Choice

Discretionary fiscal policy is when


A) existing taxation policy automatically smooths out business cycle fluctuations in the economy.
B) the government changes the level of expenditure or taxation to achieve a macroeconomic aim.
C) policy is left to the discretion of the Reserve Bank of Australia.
D) politicians are discrete about policy changes, and do not advise consumers or producers of new policies.

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