Which of the Following Macroeconomic Variables Would Likely Be Affected

question 94

Multiple Choice

Which of the following macroeconomic variables would likely be affected by a fiscal policy?

• A)The nominal interest rate
• B)The exchange rate
• C)The discount rate
• D)Employment
• E)Money supply

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Definitions:

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, not necessarily aligning with the calendar year.

Indirect Method

A way to present the cash flow from operating activities by starting with net income and adjusting for changes in balance sheet items.

Operating Activities

Operating activities are daily business functions related to producing and selling goods or services, which are reflected in a company's cash flow.

Net Income

The total profit of a company after subtracting all expenses, taxes, and losses from total revenue.