Under Fixed Rates, Which One of the Following Statements Is

question 13

Multiple Choice

Under fixed rates, which one of the following statements is the MOST accurate?

• A) Fiscal policy can affect output, employment and international reserves at the same time.
• B) Fiscal policy can affect only employment.
• C) Fiscal policy can affect only international reserves.
• D) Fiscal policy can affect only output and employment.
• E) Fiscal employment can affect only output and international reserves.

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Definitions:

Excess Cash

Funds that exceed the normal operational needs of a business, which may be used for investment or other purposes.

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability.

Stock Repurchase

A transaction in which a company buys back its own shares from the market, often to increase the value of remaining shares by reducing the supply.

Excess Cash

Funds that exceed the normal operating needs of a company, potentially available for investment or distribution to shareholders.