Discretionary Fiscal Policy Refers to Changes In

question 340

Multiple Choice

Discretionary fiscal policy refers to changes in:

• A)interest rates.
• B)the money supply.
• C)government spending or taxes to close a recessionary or inflationary gap.
• D)taxes to account for externalities and control pollution.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period, illustrating the company's financial performance.

Sales Units

The quantity of items or services sold by a business within a specific period.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets.

Current Portion

The part of long-term debt that is due within the next 12 months.