Which of the Following Best Illustrates the Use of Discretionary

question 78

Multiple Choice

Which of the following best illustrates the use of discretionary fiscal policy?

• A)Congress providing $1 billion in relief aid for hurricane victims
• B)Congress appropriating $400 million to help the needy and the appropriation being financed by a tax on wealth
• C)Income tax receipts being smaller because of a decline in real GDP during a recession
• D)The Federal Reserve tightening credit when it receives news of accelerating inflation
• E)Congress passing a bill authorizing $2 billion in additional spending when it receives news of a deepening recession

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Definitions:

Agreeableness

A personality trait in psychology that reflects the extent to which a person is cooperative, friendly, and compassionate toward others.

Positive Feedback

A method where a minor disruption's impact on a system results in the amplification of the disturbance's strength.

Negative Feedback

A process in which a system responds to a change by returning to its original state, or by decreasing the rate at which the change is occurring.

Anime

A style of animation originating from Japan, characterized by vibrant characters, colorful graphics, and fantastical themes.