Discretionary Fiscal Policy Is a Policy That _____

question 109

Multiple Choice

Discretionary fiscal policy is a policy that _____

• A) is developed in secret.
• B) applies to some states and not all states in an economy.
• C) applies to only some specific industries in an economy.
• D) works automatically without a public announcement or plan.
• E) is an intentional change in taxation or government spending.

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Definitions:

Disposable Income

The financial resources that households have at their disposal for spending and saving after income tax deductions.

Savings

Money set aside for future use rather than spending immediately, often in accounts designed for long-term growth or security.

Disposable Income

Post-tax income households possess for saving or spending purposes.

Disposable Income

Disposable income refers to the sum of money that families can use for expenditures and savings once income taxes are deducted.