Which of the Following Is Not an Example of Fiscal

question 9

Multiple Choice

Which of the following is not an example of fiscal policy?

• A) The Federal Reserve cuts interest rates to stimulate the economy in a recession.
• B) The government increases spending on infrastructure development.
• C) Congress passes new legislation, cutting the corporate income tax.
• D) During an economic expansion, the state of New York collects higher payroll taxes.

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Definitions:

One-tailed Test

A statistical test that determines the direction of a relationship, testing either for a positive or negative effect but not both.

Two-tailed Test

A statistical hypothesis test in which the area of rejection is on both ends of the sampling distribution, allowing for testing of deviations in both directions.

Generalizability

The extent to which findings from a study can be applied to broader contexts or different groups of people.

Educated Guess

A hypothesis or assumption made based on knowledge and reasoning rather than random guessing.