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.

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Definitions:

Subjective Terms

Refers to language or descriptions that are influenced by personal feelings, opinions, or interpretations rather than objective facts.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.

Physical Disabilities

Impairments that substantially limit one or more of an individual's major life activities, involving the body or physical function.

Human-Behavior Interaction

The dynamic interplay between human activities and actions and their impacts or effects in social, environmental, or technological contexts.