Which One of the Following Is an Example of Discretionary

question 203

Multiple Choice

Which one of the following is an example of discretionary fiscal policy used to correct a recessionary gap?

• A) a tax decrease passed into law by Congress
• B) an increase in the money supply by the Federal Reserve
• C) a decrease in government expenditures approved by Congress
• D) an agreement among major banks to raise interest rates

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Definitions:

Affirmed Contract

An affirmed contract is a contract that has been confirmed or validated by the parties involved or by a court, especially after a challenge of its validity.

Labor Day

An annual holiday celebrating the achievements of workers, observed on the first Monday in September in the United States.

Concrete

A construction material made from a mixture of cement, aggregates, water, and possibly additives, known for its high strength and durability.

Lumber

Timber that has been processed into beams and planks, a stage in the preparation for use as building material or other purposes.