Which of the Following Would Be Considered an Example of Fiscal

question 87

Multiple Choice

Which of the following would be considered an example of fiscal policy?

• A) A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries.
• B) A reduction in income tax rates.
• C) The provision of additional cash to the banking system.
• D) Interest rate hikes generated by a reduction in the money supply.
• E) A decision by a developing country to reduce government control of the economy and to become more market-oriented.

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Definitions:

Present Value

The present-day valuation of a money amount expected in the future or series of cash inflows, factoring in a specific return rate.

Interest Rate

The percentage charged on the total amount you borrow or save, often annually.

Annuity

An economic tool that delivers a consistent series of payments to someone, commonly utilized as a revenue stream for retired individuals.

Annually

Occurring once every year.