Discretionary Fiscal Policy Involves

question 43

Multiple Choice

Discretionary fiscal policy involves

• A) expansion of government revenues during a period of rapid growth.
• B) contraction of government revenues during a recession.
• C) automatic adjustments that affect the size of the budget deficit or surplus.
• D) an intentional change in taxation or government spending.
• E) both a and b.

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Definitions:

Scatterplot

Graphical display of paired scores on two variables measured at the interval or ratio level of measurement.

Variables

Attributes, characteristics, or conditions that can change or vary within or across subjects in a study.

Prediction

An educated guess about future events based on current knowledge, data, or trends.

Predictor Variables

Variables that are used in statistical models to predict or explain variations in another variable, often the dependent variable.