Discretionary Fiscal Policy Is When

question 146

Multiple Choice

Discretionary fiscal policy is when

• A) existing taxation policy automatically smooths out business cycle fluctuations in the economy.
• B) the government changes the level 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.

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Definitions:

Evaluating Alternatives

The process of assessing and comparing different options or courses of action in order to make an informed decision.

Cognitive Style

The preferred way an individual processes information, reflecting differences in perception, memory, and problem-solving skills.

Ecological Demands

Requirements or pressures placed on organisms by their environments, affecting their behavior, survival, and reproduction.

Socio-Historical Context

Socio-historical context involves the examination of societal and historical factors that influence events or individuals' behaviors and attitudes.