Which of the Following Actions Is an Example of Fiscal

question 11

Multiple Choice

Which of the following actions is an example of fiscal policy that aims to stimulate economic activity?

• A) an increase in spending on road works
• B) a purchase of government securities in the open market
• C) elimination of certain income tax deductions
• D) a reduction in interest rates

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Definitions:

Collusively

In a manner involving collaboration, often secretive, between parties to achieve a deceitful or illegal purpose, particularly in restricting competition.

Oligopolistic Firms

Companies operating in a market structure characterized by a small number of firms controlling a large market share, often leading to limited competition.

Pure Monopoly

A market structure where a single seller controls the entire market for a particular product or service, with no close substitutes available.

Pure Competition

A market situation characterized by an infinite number of buyers and sellers, homogeneous products, and no barriers to entry or exit.