Question

A political leader suggesting that an economic downturn will be cushioned by nondiscretionary fiscal policy is referring to:______. A) Tax policy and spending policy B) A progressive income tax and a welfare state C) Interest rates and the money supply D) Interest rates and tax rates

Answer 1

Answer:

Option A is the correct approach.

Explanation:

• This is indeed a connection to compulsory tax and government expense stabilizers which weren't at the discretion including its government. Throughout the event of a recession, expenses are cut, rising discretionary income to something like the extent that the economic depression is pacified.
• Unemployment insurance, as well as other social programs, are consequently expanded without the clear intervention of the government

The other options offered are also not relevant to the scenario presented. So, the solution above is the right one.