Examples of discretionary in the following topics:
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- Discretionary policies refer to subjective actions taken in response to changes in the economy.
- For much of the 20th century, governments adopted discretionary policies to correct the business cycle.
- A discretionary policy is supported because it allows policymakers to respond quickly to events.
- This can create compounding issues related to the discretionary policy enacted.
- A compromise between strict discretionary and strict rule-based policy is to grant discretionary power to an independent body.
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- Automatic stabilizers and discretionary policy differ in terms of timing of implementation and what each approach sets out to achieve.
- In practice, most policy changes are discretionary in nature.
- With discretionary policy there is a significant time lag.
- Discretionary policies can target other, specific areas of the economy.
- Discretionary policies can address failings of the economy that are not strictly tied to aggregate demand.
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- Discretionary fiscal policy relies on getting the timing right, but this can be difficult to determine at the time decisions must be made.
- A nation can respond to economic fluctuations through automatic stabilizers or through discretionary policy.
- With discretionary fiscal policy, timing plays a very significant role.
- Discretionary policy often requires that a set of laws must be passed through a legislature.
- Once the discretionary program is in place, the next step is to measure its effectiveness.
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- For much of the 20th century, governments adopted discretionary policies such as demand management that were designed to correct the business cycle.
- A discretionary policy is supported because it allows policymakers to respond quickly to events.
- However, discretionary policy can be subject to dynamic inconsistency: a government may say it intends to raise interest rates indefinitely to bring inflation under control, but then relax its stance later.
- A compromise between strict discretionary and strict rule-based policy is to grant discretionary power to an independent body.
- Another type of non-discretionary policy is a set of policies which are imposed by an international body.
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- Discretionary income is disposable income minus all payments that are necessary to meet current bills.
- Discretionary income = Gross income - taxes - all compelled payments (bills)
- Disposable income is often incorrectly used to denote discretionary income.
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- Fringe benefits are various indirect benefits, often of a more discretionary nature than standard benefits.
- The term perks (also perqs) is often used colloquially to refer to those benefits of a more discretionary nature.
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- Monetary policy uses a variety of discretionary tools to control one or both of these to influence outcomes like economic growth, inflation, exchange rates with other currencies, and unemployment.
- Assess the value of discretionary expansionary monetary policy and the associated shortcomings.
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- Discretionary fixed costs usually arise from annual decisions by management to spend on certain fixed cost items.
- Examples of discretionary costs are advertising, machine maintenance, and research and development expenditures.
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- The notion of real options was developed from the idea that one can view firms' discretionary investment opportunities as a call option on real assets, in much the same way as a financial call option provides decision rights on financial assets.
- Such future discretionary investment opportunities are known as growth options.
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- Major categories of FY 2012 spending included: Medicare & Medicaid ($802B or 23% of spending), Social Security ($768B or 22%), Defense Department ($670B or 19%), non-defense discretionary ($615B or 17%), other mandatory ($461B or 13%) and interest ($223B or 6%).
- Non-defense discretionary spending is used to fund the executive departments (e.g., the Department of Education) and independent agencies (e.g., the Environmental Protection Agency), although these do receive a smaller amount of mandatory funding as well.
- Discretionary budget authority is established annually by Congress, as opposed to mandatory spending that is required by laws that span multiple years, such as Social Security or Medicare.