Which of the Following Is Considered Expansionary Fiscal Policy

question 47

Multiple Choice

Which of the following is considered expansionary fiscal policy?

• A)Congress decreases the income tax rate.
• B)Congress increases defense spending.
• C)Legislation increases a college tuition deduction from federal income taxes.
• D)The Arizona legislature cuts highway spending to balance its budget.

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Definitions:

Venture Capitalist

An investor who provides capital to startup companies and small businesses with perceived long-term growth potential in exchange for equity, or ownership stake.

Potential Venture

A business idea or project that has the possibility of being developed into a successful commercial enterprise.

Vague

Describing something that is unclear, undefined, or not precise in meaning or details.

Venture Capital Funds

Pools of capital that are allocated to invest in high-growth potential startups and emerging companies.