An Example of a Demand- Side Government Policy Is

question 78

Multiple Choice

An example of a demand- side government policy is:

• A) reducing personal income tax rates to provide a greater work incentive
• B) subsidising child- care for parents to encourage them to re- enter the workforce
• C) reducing the power of trade- unions
• D) increasing spending on road construction to create jobs

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Definitions:

Simultaneous

Happening, functioning, or being carried out simultaneously.

Position

In finance, a position refers to the amount of a particular asset or security that is owned by an individual or entity.

Futures Contract

A contractual arrangement to purchase or sell a specific financial instrument or commodity at a set price on a future date.

Basis

The difference between the spot price of an asset and its future price, or the cost basis of an investment.