question archive Which of the following would be considered a discretionary fiscal policy? a
Which of the following would be considered a discretionary fiscal policy? a
Subject:EconomicsPrice:2.88 Bought3
Which of the following would be considered a discretionary fiscal policy?
a. The Fed increases the discount rate.
b. Tax revenue increases as a result of increased employment.
c. The reserve requirement is lowered from 15% to 10%.
d. Trade restrictions on foreign manufacturers expire at the end of a fiscal year.
e. The President signs a bill that decreases personal income tax rates.
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Option e. The President signs a bill that decreases personal income tax rates is correct.
This is a correct option because a discretionary fiscal policy is includes change in the taxes imposed by the government and level of spending done by the government. Therefore, when a bill is signed by the president for decreasing the rate of income tax, it will be considered as an implementation of discretionary fiscal policy.
