Examples of Fiscal Policy Do NOT Include

question 112

Multiple Choice

Examples of fiscal policy do NOT include:

• A) increasing Medicaid reimbursements.
• B) reducing the money supply to raise the interest rate.
• C) increasing personal income tax deductions for home ownership.
• D) reducing federal subsidies to state universities.

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Definitions:

Without Controls

a situation where no regulations or restrictions are imposed on the functioning of markets or economies.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, aimed at preventing prices from becoming excessively high.

Inefficiency

The state of not achieving maximum productivity or economic benefit, where resources are not used in the most effective way.

Market

Any structured system or venue where parties engage in exchange of goods, services, or information.