Which of the Following Statements Is True

question 119

Multiple Choice

Which of the following statements is true?

• A)Fiscal and monetary policy influence only economic growth.
• B)Fiscal policy influences only economic fluctuations, and monetary policy influences only economic growth.
• C)Fiscal and monetary policy influence only economic fluctuations.
• D)Fiscal policy influences only economic growth, and monetary policy influences only economic fluctuations.
• E)Fiscal and monetary policy influence both economic growth and economic fluctuations.

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Definitions:

Income Distribution

The way in which total income is shared amongst the members of a society or an economy.

Pre-Tax-And Transfer Income

Income before any taxes are deducted or any government assistance or welfare payments are added.

Poverty Rate

The percentage of the population living below the poverty line, where the poverty line is the minimum level of income deemed adequate in a specific country.

Income Range

The spread between the lowest and highest income levels within a given group.