Which of the Following Would Be Considered an Active Fiscal

question 210

Multiple Choice

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

• A)The Fed increases the money supply.
• B)Tax incentives are offered to encourage the purchase of fuel efficient cars.
• C)Spending on the war in Afghanistan is increased to promote homeland security.
• D)A tax cut is designed to stimulate spending passed during a recession.

---

Definitions:

Psychosocial Development

A theory that describes the process of human development through a series of eight social stages from infancy to adulthood, emphasizing the social nature of our development.

Mobilization

The act of assembling and making both troops and supplies ready for war, or more broadly, preparing and organizing resources for any purpose.

Communication

Communication is the process of transferring information from one person or group to another through verbal, non-verbal, written, or digital means.

Explorative

Characterized by a desire or tendency to investigate and learn about something new.