Fiscal Policy Refers to ______

question 71

Multiple Choice

Fiscal policy refers to ______.

• A) the government's use of taxing and spending powers to regulate the economy
• B) the use of interest rates to control the money supply in order to regulate the economy
• C) policies designed to regulate business, labor, and trade
• D) regulations on business, labor, and trade
• E) the regulation of the market to ensure the effectiveness of social welfare policies

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Definitions:

Interval Measure

Interval measure is a financial metric that assesses a company's ability to meet its current operational expenses by comparing its current assets to its current cash outflows.

Net Fixed Assets

These are a company's total fixed assets minus its accumulated depreciation, representing the actual value of the company’s fixed assets.

Average Daily Operating Costs

The average amount spent by a business on its day-to-day operational activities, divided by the number of days in the period.

Times Interest Earned

A financial metric indicating how well a company can meet its interest obligations from earnings before interest and taxes.