Discretionary Fiscal Policy Is When

question 163

Multiple Choice

Discretionary fiscal policy is when:

• A)existing taxation policy automatically smoothes out business cycle fluctuations in the economy.
• B)the government changes the levels of expenditure or taxation to achieve a macroeconomic aim.
• C)policy is left to the discretion of the Reserve Bank of Australia.
• D)politicians are discrete about policy changes and do not advise consumers or producers of new policies.