Which of the Following Is True for an Expansionary Fiscal

question 37

Multiple Choice

Which of the following is true for an expansionary fiscal policy?

• A)It leads to a fall in the interest rate.
• B)It has no impact on the aggregate output.
• C)It causes an increase in the aggregate demand.
• D)It increases the level of imports.

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Definitions:

Internal Control System

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Reliable Accounting

An accounting approach that emphasizes accuracy, verifiability, and impartiality in financial reporting.

Guarantee

A formal assurance, typically provided by the seller, that certain conditions, such as product quality or performance, will be met.

Efficient Operations

Activities and processes designed to achieve maximum productivity and minimize waste, enhancing the overall effectiveness of a business or organization.