Which of the Following Is an Instrument of ?Scal Policy

question 51

Multiple Choice

Which of the following is an instrument of ?scal policy?

• A) Taxation.
• B) Interest rates.
• C) Open market operations.
• D) Money supply.

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Definitions:

Loan Out

The process where an individual or company provides services through a third-party entity to minimize liability and often to gain tax efficiencies.

Repurchase Shares

The buying back of a company's own shares from the marketplace, which can increase shareholder value by reducing the number of outstanding shares.

Debt-Equity Ratio

The ratio that delineates the usage of shareholder equity and debt in the financing of company assets.

Pre-Tax Cost

The expense or cost associated with an activity or asset before the application of taxes, often used in financial analysis.