Fiscal Policy Is

question 108

Multiple Choice

Fiscal policy is

• A)periodic fluctuations in the level of economic activity.
• B)manipulation of the money supply and credit in the economy to reduce fluctuations in the business cycle.
• C)government policy concerning the manipulation of its spending and taxation to reduce fluctuations in the business cycle.
• D)the sum of government agricultural subsidies plus transfer payments.
• E)government expenditures minus tax revenues.

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Definitions:

Exporters

Individuals or companies that sell goods or services produced in one country to buyers in other countries.

Importers

Businesses or individuals that buy goods or services from foreign countries for use in their home country.

Western European Countries

Nations located in the Western part of Europe, including France, Germany, Spain, and the United Kingdom, known for their developed economies and democratic governments.

European Union (EU)

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure free movement of people, goods, services, and capital.