Which One of the Following Statements Is True

question 60

Multiple Choice

Which one of the following statements is true?

• A) Restrictive fiscal policy tends to increase economic activity.
• B) Monetary policy includes adjusting interest rates and determining the level of government taxation.
• C) Inflation has little, if any, impact on the economy or the financial markets.
• D) Both consumer spending and business investment are key components of the economy.

---

Definitions:

Knowledge Gap

The difference between what is known and what needs to be known to effectively understand or perform an activity.

Pricing Strategies

Various approaches businesses use to set prices for their products or services to maximize profitability and meet market demand.

Perishable

Describes products or services that have a limited life span or expiry date, after which they are no longer usable or valuable.

Empowerment Gap

The disparity between groups in their access to resources and opportunities that allow for empowerment and decision-making.