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Which of the Following Is an Example of Discretionary Fiscal

Question 40

Multiple Choice

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


A) an increase in employment insurance payments during a recession
B) an increase in income tax receipts with rising income during an expansion
C) tax cuts passed by the government to combat a recession
D) a decrease in employment insurance payments during an expansion or boom
E) the replacement of the sewer system after a major sewerline break

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