Fiscal policy
A) uses the tool of interest rates to stimulate private savings.
B) uses the tools of taxation and spending in an effort to address inflation and unemployment.
C) uses the tool of the exchange rate to discourage imports.
D) uses the tool of business regulation to increase economic efficiency.
B
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Which of the following is an assumption used when drawing a production possibilities frontier?
i. Human wants and desires are limited to what is available. ii. Only two goods are considered. iii. The level of technology is fixed and unchanging. A) i only B) ii only C) i and iii D) ii and iii E) i, ii, and iii
If Quick Auto Service increases the size of its shop, enabling it to purchase cost-saving capital equipment so that the cost of servicing a car falls, this would be an example of
A) economies of scope. B) economies of scale. C) monitoring. D) increasing transactions costs.