Fiscal Policy Is Defined as

question 83

Multiple Choice

Fiscal policy is defined as

• A)the design of a tax system to transfer income from the rich to the poor.
• B)the use of Congressional power to pursue social and political goals.
• C)the discretionary changing of government expenditures and/or taxes to achieve national economic goals.
• D)the use of the taxing power of the government to redistribute wealth in a socially acceptable manner.

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Definitions:

Significant Influence

A term referring to the power to participate in the financial and operating policy decisions of an entity but is not control or joint control over those policies.

Accounting Principle

Fundamental guidelines or rules that govern the financial accounting field, ensuring consistency, reliability, and comparability of financial statements.

Investment Account

An account held at a financial institution that contains securities, cash, and other assets that are invested for the purpose of earning a return.

Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to its shareholders.