Fiscal Policy Refers to

question 7

Multiple Choice

Fiscal policy refers to

• A) changes in the amount of government expenditures and taxes to achieve particular economic objectives.
• B) changes in the composition of a given amount of government expenditures to achieve particular economic objectives.
• C) changes in interest rates initiated by government action.
• D) any change in government spending or taxes that has the intended effect of destabilizing the economy.

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Definitions:

Days' Sales in Inventory

A financial measure indicating the average number of days a company takes to turn its inventory into sales.

Financial Information

Data that illustrates the financial health and performance of a business, including balance sheets, income statements, and cash flow statements.

Financial Information

Data relating to the financial performance, position, and cash flows of a business, which is used by stakeholders to make economic decisions.

Return on Total Assets

A profitability ratio that measures net income produced by total assets within a period.