Which of the Following Is an Example of a Fiscal

question 43

Multiple Choice

Which of the following is an example of a fiscal policy?

• A) The federal government increases income tax rates on people earning more than $250 000.
• B) The Bank of Canada takes action to greatly decrease the money supply.
• C) The Bank of Canada increases interest rates.
• D) Businesses begin to export and import more products and services.

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Definitions:

Mutual Funds

Mutual funds are investment vehicles that pool money from numerous investors to purchase a diversified portfolio of stocks, bonds, or other securities.

U.S. Treasury Bonds

Long-term debt securities issued by the United States Department of the Treasury with a maturity of more than ten years.

Equity Mutual Fund

A corporation that pools the funds of investors, including small investors, and uses them to purchase a bundle of stocks.