Which of the Following Would Be Classified as Fiscal Policy

question 22

Multiple Choice

Which of the following would be classified as fiscal policy?

• A)The federal government passes tax cuts to encourage firms to reduce air pollution.
• B)The Federal Reserve cuts interest rates to stimulate the economy.
• C)A state government cuts taxes to help the economy of the state.
• D)The federal government cuts taxes to stimulate the economy.
• E)States increase taxes to fund education.

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Definitions:

Conservatives

Political individuals or groups advocating for tradition, resistance to radical change, and the preservation of established institutions.

David Souter

A retired Associate Justice of the Supreme Court of the United States, known for his moderate to liberal viewpoints during his tenure from 1990 to 2009.

William Brennan

An influential Associate Justice of the U.S. Supreme Court, known for his progressive views and serving from 1956 to 1990.

Secretary of Defense

The head of the Department of Defense and a key adviser to the President, responsible for the formulation and execution of general defense policy and management of all branches of the U.S. armed forces.