Which of the Following Is an Example of Discretionary Fiscal

question 163

Multiple Choice

Which of the following is an example of discretionary fiscal policy?

• A)an increase in unemployment insurance payments during a recession
• B)an increase in income tax receipts with rising income during an expansion
• C)the tax cuts passed by Congress in 2001 to combat the recession
• D)a decrease in food stamps issued during an expansion or boom

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Definitions:

Contractual Relationship

A legally binding agreement between two or more parties, outlining their responsibilities and obligations.

Intellectual Property

The legal rights given to inventors and creators to protect their original works, inventions, and ideas for a certain period.

Joint Ventures

Business arrangements where two or more parties agree to pool their resources for accomplishing a specific task.

Core Capabilities

Fundamental skills, knowledge, and expertise that give an organization a competitive advantage in its field.