The Term "Fiscal Policy" Refers to

question 138

Multiple Choice

The term "fiscal policy" refers to

• A)the amount of physical output produced by firms
• B)the means by which government policy makes firms more productive
• C)the avenue by which government influences credit markets
• D)spending and taxing by governments
• E)a tool of government that works in the opposite direction of monetary policy

---

Definitions:

Preferred Shareholders

Investors who own preferred shares in a company, giving them priority over common shareholders in the distribution of dividends and assets.

Dividend Distributions

Payments made by a corporation to its shareholders, usually derived from the company's earnings.

Cumulative Voting

A voting system that allows shareholders to concentrate their votes on a single candidate for the board of directors.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a company.