Which of the Following Is an Example of Fiscal Policy

question 145

Multiple Choice

Which of the following is an example of fiscal policy?

• A) An increase in income taxes.
• B) Deregulation of financial institutions.
• C) Relaxed immigration laws.
• D) An increase in the discount rate.

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Definitions:

Money Supplies

The overall financial assets tally in an economy at a given point.

Money Supply Curve

A graphical representation showing the relationship between the quantity of money in the economy and the interest rate.

Equilibrium Value

The point at which the quantity demanded by consumers matches the quantity supplied by producers, achieving a market balance.

Quantity of Money

The total amount of money circulating within an economy, including cash and bank deposits, crucial for determining inflation and interest rates.