Which of the Following Would Be Considered a Fiscal Policy

question 81

Multiple Choice

Which of the following would be considered a fiscal policy action?

• 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 during a recession.

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Definitions:

Eyes Open

A state of being awake and alert, where the eyelids are lifted, allowing light to enter the eye and vision to occur.

Amplitude

In physics and other sciences, the maximum extent of a vibration or oscillation, measured from the position of equilibrium.

Strategic Fit

The degree to which an organization’s strategies align with its external environment and internal resources and capabilities, to achieve competitive advantage.

Implied Demand Uncertainty

The uncertainty faced by a company due to unpredictability in the demand for its products or services, affecting inventory and supply chain decisions.