Fiscal Policy Includes

question 10

Multiple Choice

Fiscal policy includes:

• A)tax policy only.
• B)government expenditures only.
• C)tax policy and government expenditures.
• D)tax policy, government expenditures, and monetary policy.

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Definitions:

Expected Rates of Return

The anticipated percentage gain or loss that an investment is predicted to generate over a given period of time, taking into account both known and estimated variables.

Probability Distribution

A function that represents the likelihood of various outcomes in a random experiment.

Average Portfolio Standard Deviation

A measure of the volatility of all the assets in a portfolio, calculated as the square root of the variance of the portfolio's returns.

Coefficient of Correlation

A numerical metric evaluating the magnitude and orientation of a linear correlation between two variables, with values spanning from -1 to 1.