Which of the Following Is a Discretionary Fiscal Policy Action

question 70

Multiple Choice

Which of the following is a discretionary fiscal policy action?

• A) an increase in the amount of unemployment compensation because more people become unemployed
• B) a progressive tax system that leads to an increase in income tax revenues from the rich
• C) a deliberate tax increase when the economy experiences high inflation
• D) an increase in Supplemental Security Income payments when more people become eligible for the benefits

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Definitions:

Developed

Refers to a state of advanced economic growth and industrialization characterized by high income per capita and standard of living.

Tolerance

A physiological adaptation in which exposure to a drug or stimulus over time leads to a reduced reaction, necessitating larger doses to achieve the same effect.

Cocaine

A powerful stimulant drug derived from the coca plant, which can lead to serious health issues, dependency, and addiction.

Substance Withdrawal

Symptoms that occur upon the reduction or cessation of intake of addictive substances to which one has become dependent, often leading to significant distress or impairment.