Discretionary Fiscal Policy Is So Named Because It

question 148

Multiple Choice

Discretionary fiscal policy is so named because it:

• A)is undertaken at the option of the nation's central bank.
• B)occurs automatically as the nation's level of GDP changes.
• C)involves specific changes in T and G undertaken expressly for stabilization purposes at the option of Parliament.
• D)none of the above.

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Definitions:

S&P 100 Index

An American stock market index consisting of 100 large, widely held companies across multiple industries in the United States.

Exercise Price

The fixed price at which the holder of an option can buy (in the case of a call) or sell (in the case of a put) the underlying asset.

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date.

Receive

To obtain or be provided with something.