Question

Nondiscretionary fiscal policy has its impact by:________.

a. Magnifying the economic ups and downs already occurring.
b. Congress focusing its constant attention on the economy.
c. Purposefully adjusting interest rates.
d. Dampening the economic ups and downs already occurring.

Answer 1

d. dampening the economic ups and downs already occurring

Step-by-step explanation:

Non-discretionary fiscal policy is the term used to describe the set of expenses and taxes that the federal government establishes as a measure to maintain the maintenance of income in the country. This income will be converted into resources to support many citizens' rights, such as unemployment benefits, social assistance, economic assistance, social insurance, labor benefits, among others. In addition, non-discretionary fiscal policy allows the government to have access to ways to mitigate the economic ups and downs that have already occurred in several different factors.

Answer 2

Option D=> dampening the economic ups and downs already occurring.

Step-by-step explanation:

In order to make sure the economy do not go into recession or in order to manage the economy the government of a particular country make sure to monitor the rates of tax and the way the Government spend. This concept is known as FISCAL POLICY.

A Non-discretionary fiscal policy introduce what is called automatic stabilizers which is used to reduce tax when the income of the citizens is low and it does not require the votes from the congress for it to be put into action.