A Government Using Fiscal Policy in an Attempt to Stimulate

question 85

Multiple Choice

A government using fiscal policy in an attempt to stimulate the economy would do which of the following?

• A) Raise taxes.
• B) Raise interest rates.
• C) Lower interest rates.
• D) Raise government spending.

---

Definitions:

Risky Stocks

Shares in companies with high volatility and potential for substantial gains or losses.

Scatter Plot

A graphical representation of the relationship between two variables using dots to represent the value of each.

Correlation Coefficient

A mathematical metric that evaluates the intensity of the correlation between the movements of two related variables.

Line of Best Fit

A straight line drawn through the center of a group of data points on a scatter plot, showing the direction of a relationship.