Which of the Following Statements Is True

question 29

Multiple Choice

Which of the following statements is true ?

• A) Fiscal policy is the manipulation of the nation's money supply to influence the nation's output, employment and price level.
• B) Discretionary fiscal policy is the deliberate use of changes in government spending and taxes to stabilize the economy.
• C) The tax multiplier is the change in aggregate demand resulting from an initial change in government spending.
• D) A budget deficit exists when government tax revenues exceed government spending.

---

Definitions:

Indirect

Pertains to a cost or effect that is not directly traceable to a specific cause, object, or activity, often referring to overhead costs in a business setting.

Machine Maintenance

The process of keeping machines and equipment in optimal working condition by performing regular checks, repairs, and replacements as needed.

Labor

The physical and mental effort provided by individuals in the production of goods and services.

Indirect

Expenses or actions that are not directly tied to a specific product, service, or activity but are necessary for the general operation of a business, such as utilities or management salaries.