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Discretionary fiscal policy refers to: a. Active changes to the level of government spending and/or taxation aimed at addressing the economic effects of a recession

Discretionary fiscal policy refers to:

a. Active changes to the level of government spending and/or taxation aimed at addressing the economic effects of a recession or demand pull inflation

b. Actions taken by the government to increase taxes to address Federal budget deficits

c.Actions taken by the Federal Reserve to increase or decrease the money supply

d. Existing laws which automatically alter the level of taxation and government spending to coincide with phases of the business cycle

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