Which of the Following Can Be Categorized Under Fiscal Policy

question 1

Multiple Choice

Which of the following can be categorized under fiscal policy?

• A)Increase in money supply
• B)Decrease in money supply
• C)Increase in federal funds rate
• D)Decrease in reserve requirement
• E)Increase in tax rates

---

Definitions:

Economic Problem

The fundamental issue of having limited resources to meet unlimited wants and needs, requiring choices and priorities in allocation.

Available Resources

The total assets, both natural and man-made, that can be utilized to produce goods and services.

Production Possibilities Curve

A graph that shows the maximum number of possible units a company can produce if it only produces two types of goods.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, highlighting the trade-offs in production levels between two commodities.