Which of the Following Illustrates the Use of Discretionary Fiscal

Multiple Choice

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

A)  The Bank of Canada reduces its bank rate. 
B)  Government appropriates $500 million 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)  Parliament passes a bill authorizing $2 billion in additional spending when it receives news of a deepening recession.