Discretionary fiscal policy is a fiscal policy action, such as
A) a decrease in tax receipts, initiated by the state of the economy.
B) an increase in payments to the unemployed, initiated by the state of the economy.
C) an interest rate cut, initiated by an act of Congress.
D) an increase in the quantity of money.
E) a tax cut, initiated by an act of Congress.
E
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Suppose there is currently a shortage in the guitar market. Pick the correct statement
A) Quantity demanded exceeds quantity supplied. B) Sellers could sell all they plan to sell at the current price. C) The price of guitars would tend to increase. D) All of the above are true. E) None of the above is true.
Which of the following statements is correct?
A) Dynamic open market operations are carried out to offset fluctuations in the monetary base. B) Defensive open market operations are carried out to change monetary policy. C) The volume of defensive open market operations is much greater than the volume of dynamic open market operations. D) Defensive open market operations are usually carried out through outright purchases or sales.