Fiscal Policy Mainly Involves

question 34

Multiple Choice

Fiscal policy mainly involves

• A) setting interest rates.
• B) government decisions about the total amount of revenue and spending.
• C) government decisions about spending but not about taxes.
• D) government decisions about whether to impose tariffs on imports from other countries.
• E) government regulation of the credit card industry.

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Definitions:

Merchandise Exports

Goods produced within a country and sold to customers in another country, contributing to the country's gross domestic product.

Capital Account

A national account that records the transactions involving international transfer of capital, such as foreign direct investments and portfolio investments.

Balance of Goods

The difference in value between a country's imports and exports of physical products.

Tangible Products

Physical items that can be seen, touched, and used, as opposed to services or digital products.