When the government conducts activist fiscal policy, what type of spending does it usually use?

A. discretionary spending

B. entitlement and mandatory spending

C. net interest spending

D. strategic spending

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Vaishnavi KanukurtiLv10

11 Sep 2020

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. If the economy is prosperous and inflation is relatively high, then the discretionary fiscal policy or policies that would most likely be recommended to correct this macroeconomic problem would be:
A. Increased government spending or increased taxation, or a combination of the two actions
B. Increased government spending or decreased taxation, or a combination of the two actions
C. Increased government spending or increased taxation, but not a combination of the two actions
D. Decreased government spending or increased taxation, or a combination of the two actions

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A. government spending and changes in the money supply

B. money supply and taxation

C. government spending and taxation

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