Question

Discretionary fiscal policy

a. may reassure investors and consumers that the federal government will be able to avert a major economic downturn.

b. is not very effective in influencing real gdp during normal times because of time lags.

c. can be very effective in influencing real gdp during abnormal​ times, such as when a nation is at war.

d. all of the above

Answer 1

The answer is option "d", all of the above.
Discretionary fiscal policy
a. may reassure investors and consumers that the federal government will be able to avert a major economic downturn.

b. is not very effective in influencing real GDP during normal times because of time lags.

c. can be very effective in influencing real GDP during abnormal​ times, such as when a nation is at war.

We can define discretionary fiscal policy as when there is a change in government expenditures or taxes to gain national economic goals.