Which of the following best illustrates the use of discretionary countercyclical fiscal policy?

a. Congress provides $90 billion in relief aid for hurricane victims.
b. Congress appropriates $50 billion to help the needy, and the appropriation is financed by a tax on wealth.
c. Income tax receipts are smaller because of a decline in real GDP during a recession.
d. Congress passes a bill authorizing $100 billion in additional spending when it receives news of a deepening recession.


D

Economics

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Economics