Which of the Following Is an Example of Discretionary Fiscal

question 157

Multiple Choice

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

• A) An increase in the number of unemployment benefit payments during a recession due to rising unemployment.
• B) An increase in income tax receipts during an expansion because incomes are rising.
• C) Tax increases to combat rising inflation.
• D) A decrease in income tax receipts during a recession because incomes are falling.