Fiscal policy refers to
A. the techniques used by a business firm to reduce its tax liability.
B. the behavior of the nation's central bank, the Federal Reserve, regarding the nation's money supply.
C. the government's ability to regulate a firm's behavior in the financial markets.
D. the spending and taxing policies used by the government to influence the economy.
Answer: D
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Refer to the table above. If the price of a chair decreases to $5 and the rental price of machines is $50 per day, up to how many machines should the firm rent?
A) 2 B) 3 C) 5 D) 7
According to the Coase theorem, externalities
A. must usually be internalized by taxation or subsidy. B. can be internalized by the market under certain conditions. C. result when firms fail to maximize profits. D. cannot be internalized if property rights are assigned. E. are not relevant to the issue of market failure.
Deficit spending and the national debt are different terms for the same concept
Indicate whether the statement is true or false
The largest merchandise exporting country is ______________.
Fill in the blank(s) with the appropriate word(s).