单选题 Assuming the economy currently is experiencing high inflation, an example of appropriate discretionary fiscal policy is: A. increase the federal funds target rate. B. reduce government expenditures on major government construction projects. C. reduce the money supply.

【正确答案】 B

【答案解析】Discretionary fiscal policy refers to the federal government's decisions regarding government spending and taxing. A reduction in government spending on major government construction projects is likely to lead to a reduction in aggregate demand and less pressure on prices, reducing inflation.