Which of the Following Is True of Fiscal Policy Before

question 27

Multiple Choice

Which of the following is true of fiscal policy before the Great Depression of the 1930s?

• A)Fiscal policy was made at the federal level.
• B)Policies associated with national defense were made at the state level.
• C)Foreign policy was made at the State level.
• D)The federal budget was determined mostly by economists and not by politicians.
• E)National defense and foreign trade were the focus areas of the federal government while other areas of government policy were dealt by the individual states.

---

Definitions:

Social Security Contributions

Payments made to a government scheme that provides retirement, disability, and survivals benefits, funded through taxes on employers and employees.

Benefits

Advantages or payments made to employees, members of insurance policies, or other eligible parties, often in the form of health insurance, retirement plans, or disability coverage.

Tax Shelter

An investment strategy or financial arrangement designed to reduce, defer, or eliminate tax liabilities.

Deferred Taxes

Tax liabilities or assets that arise due to differences between the financial accounting and tax treatment of transactions, recognized in corporate financial statements.