Non-discretionary fiscal policy is the same concept as which of the following?
A. fiscal policy signed into law by congress
B. increase in the money supply
C. automatic increase or decrease in federal spending
C. automatic increase or decrease in federal spending
Explanation:
As the term suggests, Non-discretionary fiscal policy is not at the discretion of the government. Such policies are automatically create effects, technically it is called as automatic stabilizers and without specific new legislation budget will increase or decrease here during the recession time.
They implement a counter-cyclical approach, without gaps associated with changes in legislative process.
