1. Which one of the following statements about discretionaryfiscal policy is correct? A. Discretionary fiscal policy refers toany change in government spending or taxes that destabilizes theeconomy. B. Discretionary fiscal policy refers to the changes intaxes and transfers that occur as GDP changes. C. Discretionaryfiscal policy refers to the authority that the President has tochange personal income tax rates. D. Discretionary fiscal policyrefers to changes in taxes and government expenditures made byCongress to stabilize the economy.