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.

---

Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.

Chemosensitive Area

Chemosensitive neurons in the medulla oblongata detect changes in blood, carbon dioxide, and pH.

Medulla Oblongata

Inferior portion of the brainstem that connects the spinal cord to the brain and contains autonomic centers controlling functions such as heart rate, respiration, and swallowing.

Pons

Portion of the brainstem between the medulla and midbrain.