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Questions and Answers
Which of the following best describes fiscal policy?
Which of the following best describes fiscal policy?
- Implementing trade tariffs to protect domestic industries.
- Regulating bank interest rates to control inflation.
- Controlling the money supply through the central bank.
- Adjusting government spending and taxes to influence the economy. (correct)
How does fiscal policy primarily aim to affect economic conditions?
How does fiscal policy primarily aim to affect economic conditions?
- By limiting the amount of money available for loans.
- By modifying aggregate demand and employment levels. (correct)
- By manipulating foreign exchange rates.
- Through government intervention in stock markets.
Which of the following is NOT a primary goal of fiscal policy?
Which of the following is NOT a primary goal of fiscal policy?
- Increasing the stock market value. (correct)
- Reducing unemployment.
- Stimulating economic growth.
- Controlling inflation rates.
What effect does increased government spending typically have in fiscal policy?
What effect does increased government spending typically have in fiscal policy?
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Which of these actions would be considered an expansionary fiscal policy?
Which of these actions would be considered an expansionary fiscal policy?
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