Which of the Following Would Be Classified as Fiscal Policy

question 25

Multiple Choice

Which of the following would be classified as fiscal policy?

• A) Provinces increase taxes to fund education.
• B) The Bank of Canada lowers interest rates to stimulate the economy.
• C) The federal government passes tax cuts to encourage households to install solar panels.
• D) The federal government lowers tax rates to stimulate the economy.

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Definitions:

Error of Estimation

Error of estimation is the discrepancy between an estimated value and the true value of a parameter being estimated.

Sampling Error

The error caused by observing a sample instead of the whole population, affecting the precision of statistical estimates.

Population Standard Deviation

The square root of the variance in a population, reflecting how much individual data points in the entire population deviate from the population mean.

Confidence Level

The degree of certainty or probability with which a parameter of a population is estimated.