Discretionary Fiscal Policy Is

question 102

Multiple Choice

Discretionary fiscal policy is

• A) automatic changes in government expenditures and interest rates that achieve certain national economic goals.
• B) deliberate changes in government expenditures or taxes in order to achieve certain national economic goals.
• C) used to achieve full employment by changing monetary growth targets.
• D) deliberate changes in government regulations in markets to achieve certain social goals.

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Definitions:

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time.

Gross Saving

Gross Saving is the total amount of savings made within an economy before any deductions for depreciation or consumption.

Business Saving

Business Saving involves the retention of profits by a business after paying taxes and dividends, meant for future investment or to cover future expenses.

Productivity Growth

An increase in the efficiency of production, measured by the amount of goods and services produced per unit of labor, capital, or other inputs.