Fiscal Policy Refers to

question 188

Multiple Choice

Fiscal policy refers to

• A) the techniques used by a business firm to reduce its tax liability.
• B) the behavior of the nation's central bank, the Federal Reserve, regarding the nation's money supply.
• C) the spending and taxing policies used by the government to influence the economy.
• D) the government's ability to regulate a firm's behavior in the financial markets.

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Definitions:

Eight Year Note

A debt instrument with a fixed interest rate and a maturity of eight years, at which point the principal sum is repaid to investors.

Yield

Yield is the income returned on an investment, such as the interest or dividends received from holding a particular security, expressed usually as a percentage of the investment's cost.

Buyer

An individual or entity that purchases goods or services from another for a price.

Compounded Semi-annually

A method of calculating interest where the interest is added to the principal amount every six months, affecting subsequent interest calculations.