discretionary fiscal policy

discretionary fiscal policy definition - business

discretionary fiscal policy

Elective changes in government spending and taxation in response to changes in economic activity. For example, in a period of recession, the government might increase highway spending in order to stimulate aggregate demand. Discretionary fiscal policy is not automatic and is not mandated by law.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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