Which One of the Following Is an Example of Discretionary

question 228

Multiple Choice

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

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

---

Definitions:

Cognitive-Behavioral Approach

A psychological approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Unipolar Depression

A major depressive disorder characterized by a persistent feeling of sadness or lack of interest, without the mood swings seen in bipolar disorder.

Psychoanalytic Theory

A body of theories developed by Sigmund Freud, which posits that human behavior is the outcome of interactions among various components of the mind, including the id, ego, and superego.

Depression

A common and serious mood disorder that affects how a person feels, thinks, and handles daily activities, characterized by persistent feelings of sadness and/or a lack of interest in previously enjoyed activities.