Discretionary Fiscal Policy

question 3

Multiple Choice

Discretionary fiscal policy

• A)does not require specific action or policy changes
• B)changes with levels of GDP
• C)requires action taken in conjunction with the Federal Reserve System.
• D)requires specific action by Congress to change taxes and government spending

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Definitions:

Probability Distribution

A numerical function indicating all likely outcomes and their associated probabilities for a random variable across a designated range.

Probability Distribution

Probability distribution describes how the probabilities of various outcomes are distributed for a random variable, outlining the likelihood of different results.

Perfectly Negatively Correlated

Describes two variables that move in opposite directions consistently, such that when one increases, the other decreases by an exactly proportional amount.