Which of the Following Best Illustrates the Use of Discretionary

question 105

Multiple Choice

Which of the following best illustrates the use of discretionary fiscal policy?

• A) Congress providing $1 billion in relief aid for hurricane victims
• B) Congress appropriating $400 million to help the needy and the appropriation being financed by a tax on wealth
• C) income tax receipts being smaller because of a decline in real GDP during a recession
• D) the Federal Reserve tightening credit when it receives news of accelerating inflation
• E) Congress passing a bill authorizing $2 billion in additional spending when it receives news of a deepening recession

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Definitions:

Hindsight Bias

The tendency to believe, after an outcome is already known, that one would have correctly predicted it beforehand, often described as the "I knew it all along" phenomenon.

Sampling

is the process of selecting a representative group or subset from a larger population for the purpose of making inferences about the larger group.

Dependent Variable

In research, the variable being tested and measured, whose changes are dependent on manipulations of the independent variable.

Team-Building Responsibilities

Entails activities and efforts undertaken by a group or organization to enhance social relations, define roles, and improve team dynamics and performance.