Which of the Following Would Be Considered a Fiscal Policy

question 156

Multiple Choice

Which of the following would be considered a fiscal policy action?

• A)A city changes its rates of land tax.
• B)A federal government creates a subsidy for hybrid cars to encourage the purchase of fuel-efficient cars.
• C)Foreign aid is given to Indonesia.
• D)A tax cut is designed to stimulate spending during an economic contraction.

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Definitions:

March 31

A specific date marking the end of the first quarter in a calendar year.

Physical Inventory

Physical inventory entails a manual count of all the tangible goods or merchandise kept in a business's possession for the purpose of verifying records and ensuring accuracy in financial statements and records.

Balance Sheet

A financial report that offers a brief overview of a corporation's financial status at a certain moment, detailing the assets, liabilities, and shareholders' equity.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, net income, and earnings per share.