Question
Discretionary fiscal policy consists of deliberate changes in government spending and taxation designed to do which of the following?
Multiple select question.
Adjust the money supply
Control inflation
Encourage economic growth
Achieve full employment
Manage the interest rate
Multiple select question.
Adjust the money supply
Control inflation
Encourage economic growth
Achieve full employment
Manage the interest rate
Answers
GPT-4o mini
Discretionary fiscal policy consists of deliberate changes in government spending and taxation designed to achieve the following:
- **Control inflation**
- **Encourage economic growth**
- **Achieve full employment**
Discretionary fiscal policy does not directly adjust the money supply or manage interest rates. These functions are typically the purview of monetary policy, which is handled by a country's central bank.
- **Control inflation**
- **Encourage economic growth**
- **Achieve full employment**
Discretionary fiscal policy does not directly adjust the money supply or manage interest rates. These functions are typically the purview of monetary policy, which is handled by a country's central bank.