Fiscal policy refers toa. changes in the interest rate. b. changes in the money supply. c. changes in the amount of physical capital in the economy. d. discretionary changes in government spending and taxes. when an economist is using the term "discretionary" as in discretionary spending, they are referring to thea. money a government must spend on legislated items, such as social security payments. b. consumption of households. c. amount of government spending decided upon by congress or the government's ruling body. d. the shifts of the demand and supply curves.
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