Discretionary Fiscal Policy Refers To

question 70

Multiple Choice

Discretionary fiscal policy refers to:

• A)any change in government spending or taxes which destabilizes the economy.
• B)the authority which Parliament has to change personal income tax rates.
• C)changes in taxes and government expenditures made by Parliament to stabilize the economy.
• D)the changes in taxes and transfers which occur as GDP changes.

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Definitions:

Marginal Tax Rates

The rate at which the last dollar of income is taxed, indicating the impact of an additional dollar of income on tax liability.

Taxable Income

The amount of income subject to tax, after all deductions and exemptions have been subtracted from total income.

CCA Rate

Stands for Capital Cost Allowance rate, which is the rate at which a business can claim depreciation on capital assets for tax purposes in Canada.

UCC

An abbreviation for the Uniform Commercial Code, a set of laws governing sales and commercial transactions in the United States.