Which of the Following Would Be an Appropriate Discretionary Fiscal

question 102

Multiple Choice

Which of the following would be an appropriate discretionary fiscal policy to use when the economy is in a recession?

• A) increased government spending
• B) higher taxes
• C) a balanced-budget reduction in both spending and taxes
• D) an expansion in the money supply

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Definitions:

Ethical Conduct

Behavior that is consistent with principles of moral and ethical standards, which guide decision-making and actions.

External User

External User refers to individuals or entities outside of a company who use its financial statements to make decisions, such as investors, creditors, and regulatory agencies.

Federal Government

The national government of a federated state, which holds the authority to govern the issues that affect the entire country.

Financial Accounting Standards Board

An independent organization responsible for establishing and improving financial accounting and reporting standards in the United States.