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Which of the Following Is an Example of Discretionary Fiscal

Question 57

Multiple Choice

Which of the following is an example of discretionary fiscal policy?


A) An increase in the number unemployment benefit payments during a recession due to rising unemployment.
B) An increase in income tax receipts during an expansion because incomes are rising.
C) Tax increases to combat rising inflation.
D) A decrease in income tax receipts during a recession because incomes are falling.

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