Which of the Following Best Illustrates the Use of Discretionary

Multiple Choice

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

A) Congress provides $90 billion in relief aid for hurricane victims.
B) Congress appropriates $50 billion to help the needy, and the appropriation is financed by a tax on wealth.
C) Income tax receipts are smaller because of a decline in real GDP during a recession.
D) Congress passes a bill authorizing $100 billion in additional spending when it receives news of a deepening recession.