Which of the Following Is Considered Expansionary Fiscal Policy

question 47

Multiple Choice

Which of the following is considered expansionary fiscal policy?

• A)Congress decreases the income tax rate.
• B)Congress increases defense spending.
• C)Legislation increases a college tuition deduction from federal income taxes.
• D)The Arizona legislature cuts highway spending to balance its budget.

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Definitions:

Manufacturing Costs

The total expenses involved in the manufacture of products, including direct materials, direct labor, and manufacturing overhead.

Cost of Goods Manufactured

The total cost incurred to produce goods during a specific period, including materials, labor, and overhead costs.

Cost of Goods Sold

The total expense directly associated with producing or purchasing goods that have been sold.

Period Cost

Costs that are expensed in the period they are incurred and are not directly tied to the production of goods.