Which of the following is an example of fiscal policy?
A. a reduction in the money supply.
B. a reduction in the federal funds rate.
C. a reduction in lump-sum taxes.
D. an increase in the government deficit due to more military spending in wartime.
Answer: C
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The 2010 Patient Protection and Affordable Care Act (Obamacare) contains a provision that may require individuals to either purchase private health insurance or pay a tax. This is an example of
A) a mixed economy. B) market capitalism. C) centrally planned socialism. D) the invisible hand.
Assume it is announced that a large number of new competitors have entered the market for mountain bikes, each offering a different model. Based on this information, this industry is best characterized as:
A) perfectly competitive. B) a monopoly. C) monopolistically competitive. D) an oligopoly.
A sale in which property or a service is sold to the highest bidder is called a(n)
A) auction. B) bidder sale. C) competitive market. D) Austrian bundle.
For a corporation, an important advantage of selling stocks instead of bonds is that:
a. in the case of a bond, the corporation has to pay a fixed rate of interest, while in the case of a stock, the corporation is not liable to pay any interest. b. in the case of a bond, the corporation has to pay a fixed rate of interest, while in the case of a stock, the corporation earns a fixed rate of interest. c. a bond can generate funds for the corporation only once, while a stock generates funds for the corporation each time it is resold. d. it is difficult to sell a bond because people perceive that a bond is risky, while it is easier to sell a stock because people perceive that it is safe to invest in stock.