Discretionary Fiscal Policy Is a Fiscal Policy Action,such as

question 211

Multiple Choice

Discretionary fiscal policy is a fiscal policy action,such as

• A)an interest rate cut,initiated by an act of Congress.
• B)an increase in payments to the unemployed,initiated by the state of the economy.
• C)a tax cut,initiated by an act of Congress.
• D)a decrease in tax receipts,initiated by the state of the economy.
• E)an increase in the quantity of money.

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Definitions:

Decision-making Authority

The power or right to make decisions regarding policies, procedures, or spending in a business or organization.

Agent

A party primarily engaged to act on behalf of and for the benefit of another party or parties (the principal(s)) which therefore does not control the investee when it exercises its decision-making authority.

Variable Returns

Returns from an investment that fluctuate over time due to market conditions or other factors.

Economies of Scale

Cost advantages that entities experience as their operational size or volume increases, leading to reduced costs per unit of output.