Nondiscretionary fiscal policy relies in part on

A) spending for national defense.
B) automatic changes in personal and corporate income tax receipts to stabilize economic activity.
C) checks and balances established by the United States Constitution.
D) "do nothing" economic policies,based on the belief that a market economy is stable and self-adjusting.

Nondiscretionary Fiscal Policy

involves automatic stabilizers that adjust government spending and taxes without the need for new legislation, helping to moderate the business cycle.

National Defense

The governmental activities and structures designed to protect a country from external threats and ensure its security.

Tax Receipts

The income received by the government from taxes. It represents the primary source of revenue for government operations.