Which of the following best illustrates the use of discretionary fiscal policy?

a. Congress providing $1 billion in relief aid for hurricane victims
b. Congress appropriating $400 million to help the needy and the appropriation being financed by a tax on wealth
c. Income tax receipts being smaller because of a decline in real GDP during a recession
d. The Federal Reserve tightening credit when it receives news of accelerating inflation
e. Congress passing a bill authorizing $2 billion in additional spending when it receives news of a deepening recession

e

Economics

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