Which of the Following Is an Example of Discretionary Fiscal

question 163

Multiple Choice

Which of the following is an example of discretionary fiscal policy?

• A)an increase in unemployment insurance payments during a recession
• B)an increase in income tax receipts with rising income during an expansion
• C)the tax cuts passed by Congress in 2001 to combat the recession
• D)a decrease in food stamps issued during an expansion or boom

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Definitions:

Implementation

The act of executing or applying a plan, policy, or procedure to achieve desired goals or outcomes.

Triggering Event

An occurrence that sets in motion a series of actions, often used in business or law to indicate an event that triggers a contractual obligation or procedure.

Business Manager

An individual responsible for overseeing and directing the operations and activities within a business, ensuring efficiency and goal achievement.

Income Uncertainty

The unpredictability of future income streams, often associated with variable earnings, job instability, or economic fluctuations.