All of the Following Are Tools of Fiscal Policy Except

question 85

Multiple Choice

All of the following are tools of fiscal policy except one.Which is the exception?

• A)Taxes
• B)Transfer payments
• C)Interest rates
• D)Government purchases of goods
• E)Government purchases of services

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Definitions:

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio.

Insurance

A financial product sold by insurance companies to safeguard against the risk of financial losses, both big and small.

Reducing Risk

Strategies and actions taken to minimize potential losses or the likelihood of undesirable outcomes in investment, operational, and financial activities.

Demand Curve

A visual chart that illustrates the connection between a product's price and the amount of it consumers want to buy.