Discretionary Fiscal Policy Is

question 9

Multiple Choice

Discretionary fiscal policy is

• A) the responsibility of the Federal Reserve System.
• B) designed to increase the size of recessionary and inflationary gaps.
• C) focused on making the 45-degree line more vertical.
• D) intended to ensure continuing corporate dividends under changing sales conditions.
• E) implemented through changes in government expenditures and tax rates.

---

Definitions:

Somatostatin

A hormone that inhibits the secretion of several other hormones, including growth hormone and insulin.

Hormones

Chemical substances produced in the body that regulate and control the activity of certain cells or organs.

Insulin Shock

A severe hypoglycemic condition resulting from an excess of insulin in the bloodstream, leading to symptoms like tremors, confusion, and potential loss of consciousness.

Type 1 Diabetes Mellitus

A chronic condition where the pancreas produces little or no insulin, a hormone needed to allow sugar (glucose) to enter cells to produce energy.