Which of the Following Best Illustrates the Use of Discretionary

question 28

Multiple Choice

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

• A)Congress provides $1 billion in relief aid for hurricane victims.
• B)Congress appropriates $500 million to help the needy,and the appropriation is financed by a tax on wealth.
• C)Income tax receipts are smaller because of a decline in real GDP during a recession.
• D)The Federal Reserve tightens credit when it receives news of accelerating inflation.
• E)Congress passes a bill authorizing $2 billion in additional spending when it receives news of a deepening recession.

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Definitions:

Behavioral Response

The observable reaction or action of an individual following a stimulus or in a particular situation.

Verbal Response

A spoken or written reply or reaction to a question, statement, or situation.

Nonverbal Response

Communication without words, using gestures, facial expressions, and body language to convey a message or reaction.

Audience-centered

Refers to a communication approach that tailors the message based on the audience's needs, interests, and expectations.