When the federal government changes purchases and/or taxes to stimulate the economy or rein in inflation, such policy is rev: 06_13_2018 Multiple Choice active monetary policy. automatic fiscal policy. discretionary fiscal policy. active federal policy.

The answer for "When the federal government changes purchases and/or taxes to stimulate the economy or rein in inflation is discretionary fiscal policy".

Explanation:

Discretionary fiscal policy is a change in government spending or taxes. Its purpose is to expand or shrink the economy as needed.

It is a non-mandatory changes in taxation, spending, or other fiscal activities by a government in response to economic events or changes in economic conditions.

Discretionary fiscal policy implies government actions above and beyond existing fiscal policies, and often occurs in periods of recession or economic turbulence.

This policy implies that the government made changes to tax rates and or levels of government spending.

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