Government Purchases of Goods and Services _____, While Changes in Taxes

question 195

Multiple Choice

Government purchases of goods and services _____, while changes in taxes and transfer payments _____.

• A) are exercises of fiscal policy; are exercises of monetary policy
• B) are exercises of monetary policy; are exercises of fiscal policy
• C) influence aggregate demand directly; influence aggregate demand indirectly
• D) influence aggregate demand indirectly; influence aggregate demand directly

---

Definitions:

Poverty Rates

The percentage of the population living below the poverty line, reflecting the proportion of individuals or families who cannot meet basic needs.

Poverty Threshold

The minimum level of income deemed adequate in a particular country for a person or family to afford basic needs, such as food, housing, and clothing.

Bottom 20 Percent

Refers to the lowest fifth of individuals or households in terms of income or wealth distribution in a given population.

Guaranteed Income Level

A system which ensures individuals or households receive a minimum amount of income, provided by the government or another institution.