An example of a discretionary fiscal policy is when
A. tax receipts fall as incomes fall.
B. unemployment compensation payments rise with unemployment rates.
C. food stamp payments rise when the economy is in a recession.
D. Congress passes a law that raises personal marginal tax rates.
Answer:D
An example of a discretionary fiscal policy is when
A. tax receipts fall as incomes fall. B. unemployment compensation payments rise with unemployment rates. C. food stamp payments rise when the economy is in a recession. D. Congress passes a law that raises personal marginal tax rates.