Which of the Following Situations Illustrates How Fiscal Policy Can

question 98

Multiple Choice

Which of the following situations illustrates how fiscal policy can influence aggregate demand?

• A)The Bank of Canada raises interest rates so people plan to buy less consumer durables.As a result, the aggregate demand curve shifts leftward.
• B)Investors, anticipating an erosion of financial wealth due to inflation, decide to save more.As a result, aggregate demand decreases.
• C)The government reduces the goods and services tax.As a result, consumption expenditure increases and aggregate demand increases.
• D)The exchange rate value of the Canadian dollar rises.As a result, people living near the U.S.-Canada border increase their imports of goods and net exports decrease.
• E)Both A and C are examples of fiscal policy.

Understand the categorization of medical items based on the required level of sterilization or disinfection.

Learn about the various safety devices designed to prevent needlestick and sharps injuries.

Understand the differentiation between asset and liability accounts in the context of merchandise inventory.

Apply recording transactions under both perpetual and periodic inventory systems.

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Definitions:

Radial Symmetry

A body plan in which body parts are arranged around a central axis, characteristic of many invertebrates like jellyfish and sea urchins.

Deuterostomes

A major group of animals in which the anus develops from the first opening in the embryo, with humans and starfish as examples.

Chordates

A phylum of animals that, at some stage in their life cycle, possess a notochord, a hollow dorsal nerve cord, pharyngeal slits, endostyle, and a post-anal tail.

Lophotrochozoa

A group of protostome animals within the Ecdysozoa, including mollusks, annelids, and several other phyla, characterized by specific larval and ciliary features.