discretionary

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 1P
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An increase in the tax rates as a result of a new tax law passed by Congress is an example of ________.

a. discretionary fiscal policy
b. increasing the government debt
c. increasing the government deficit
d. needs-tested taxing change.
Expert Solution
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In an economy, government imposes taxes on the citizens to make different types of economic activities and to use public services.

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