Fiscal Policy Affects

question 48

Multiple Choice

Fiscal policy affects

• A)The level of output only.
• B)The mix of output only.
• C)Both the level and the mix of output.
• D)Interest rates only, and therefore does not affect the level or mix of output.

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Definitions:

Interest Expense

The financial charge an organization incurs over time for borrowing funds.

Note Payable

A written promissory note wherein the borrower agrees to pay back the lender on demand or at a predetermined future date, along with interest.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations, investment activities, and financing, as well as all cash outflows that pay for business activities and investments during a given period.

Common Stock

A type of security that signifies ownership in a corporation, representing a claim on part of the corporation's profits and assets.