Which of the Following Best Illustrates the Use of Discretionary

question 13

Multiple Choice

Which of the following best illustrates the use of discretionary countercyclical fiscal policy?

• A) Congress provides $90 billion in relief aid for hurricane victims.
• B) Congress appropriates $50 billion to help the needy, and the appropriation is financed by a tax on wealth.
• C) Income tax receipts are smaller because of a decline in real GDP during a recession.
• D) Congress passes a bill authorizing $100 billion in additional spending when it receives news of a deepening recession.

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Definitions:

Mutually Agree

A situation in which two or more parties come to a common understanding or consent on a matter.

Executed

indicates that an operation or task has been successfully carried out or implemented to its full extent.

Preexisting Duty Rule

A principle in contract law stating that performing or promising to perform a duty already owed under contract does not constitute valid consideration for a new promise.

Unforeseen Difficulties

Unexpected challenges or obstacles that were not anticipated, making a task or goal harder to achieve.