Which Measure Is NOT a Channel Through Which the Government

question 63

Multiple Choice

Which measure is NOT a channel through which the government can influence aggregate demand?

• A) direct spending on goods and services
• B) transfer payments to households and firms
• C) taxes on households and firms
• D) regulation on businesses

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Definitions:

Debt Financing

The raising of funds through borrowing, typically by issuing bonds or taking out loans, to finance an organization's operations or projects.

Capital

The money and property that a business needs to operate.

Corporation by Estoppel

A legal doctrine that prevents a person from denying the corporate existence of an entity when they have treated it as a corporation.