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.

Understand the significance of the historical cost principle in balance sheet reporting.

Define the primary objective of financial reporting.

Compute key financial ratios like the current ratio and explain their significance.

Understand the principles of social responsibility and its different viewpoints.

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