which of the following is a non - discretionary fiscal policy?\nchanging the federal funds rate\nexchanging…

which of the following is a non - discretionary fiscal policy?\nchanging the federal funds rate\nexchanging government treasuries\nunemployment benefits\nchanging the reserve ratio

which of the following is a non - discretionary fiscal policy?\nchanging the federal funds rate\nexchanging government treasuries\nunemployment benefits\nchanging the reserve ratio

Answer

Brief Explanations:

Non - discretionary fiscal policy refers to automatic stabilizers that work without explicit government action. Unemployment benefits are an automatic stabilizer as they increase during economic downturns (when unemployment rises) and decrease during expansions without the need for new government legislation. Changing the federal funds rate and reserve ratio are monetary policy tools, not fiscal. Exchanging government treasuries is also related to monetary policy operations by the central bank.

Answer:

C. unemployment benefits