What Are the Two Tools of Fiscal Policy That Governments

question 56

Multiple Choice

What are the two tools of fiscal policy that governments can use to stabilize an economy?

• A) government spending and technology improvements
• B) government spending and taxation
• C) taxation and controlling imports
• D) taxation and controlling exports

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Definitions:

Expected Return

The anticipated average return on an investment, factoring in the probabilities of each potential outcome.

Expected Rate of Return

The anticipated average rate of return on an investment over a specified period.

Variance

The statistical measure of the dispersion of a set of data points, often used to quantify risk or volatility in financial contexts.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment portfolio.