Question

When the Federal government takes action to change taxes and spending to stimulate the economy such policy is:_________

a. Passive
b. Automatic
c. Discretionary
d. Nondiscretionary

Answer 1

c. Discretionary

Step-by-step explanation:

The discretionary policy is the policy that depends upon the judgement of the people who made the policy. It also deals in the decision making with respect to the monetary and fiscal policy

So here in the given situation, it is mentioned at the time of taking the action by the federal government with respect to change in the taxes and the spending in order to stimulate the economy

So this situation represents the discretionary policy

therefore the option c is correct