Which of the Following Is an Example of a Fiscal

question 17

Multiple Choice

Which of the following is an example of a fiscal stimulus?

• A)decrease in government expenditure on goods and services
• B)decrease in transfer payments
• C)increase in taxes
• D)decrease in taxes
• E)none of the above

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Definitions:

Equilibrium Price

The price point at which the supply of a good matches its demand in the market.

Economic Impact

The effect of an event, policy, or business activity on the economy of a specific area, ranging from local to global.

Per-apple Tax

A unit tax applied specifically to the sale of apples, affecting their market price per unit.

Imported Apples

Apples that are brought into one country from another to be sold in the domestic market.