An Example of Discretionary Fiscal Policy Would Be

question 10

Multiple Choice

An example of discretionary fiscal policy would be

• A)the operation of the welfare state.
• B)the operation of the progressive federal income tax.
• C)a tax cut adopted to stimulate consumption.
• D)an interest rate cut implemented to stimulate consumption.

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Definitions:

Financial Advantage

Refers to the benefit gained in financial terms, which could be through cost savings, revenue increase, or any other financial gain.

Special Discounted Price

A lower than the usual price offered on goods or services, typically for promotional purposes or to specific customer groups.

Milling Machines

A type of machine tool used to machine solid materials, such as metal, by removing material to form shapes.

Least Profitable Use

The use or application of a resource that results in the lowest profit margin compared to other possible uses.