Author Question: Which of the following best illustrates the use of discretionary fiscal policy? a. Congress ... (Read 22 times)

burton19126 · **on:** Jun 30, 2018

Which of the following best illustrates the use of discretionary fiscal policy?
a. Congress providing 1 billion in relief aid for hurricane victims
b. Congress appropriating 400 million to help the needy and the appropriation being financed by a tax on wealth
c. Income tax receipts being smaller because of a decline in real GDP during a recession
d. The Federal Reserve tightening credit when it receives news of accelerating inflation
e. Congress passing a bill authorizing 2 billion in additional spending when it receives news of a deepening recession

Question 2

In the short-run, total fixed costs always exceed total variable costs.
a. True
b. False
Indicate whether the statement is true or false