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Which of the Following Would Be Considered an Active Fiscal

Question 39

Multiple Choice

Which of the following would be considered an active fiscal policy?


A) The Bank of Canada increases the money supply.
B) Tax incentives are offered to encourage the purchase of fuel-efficient cars.
C) Spending on military missions in Afghanistan is increased to promote national security.
D) A tax cut is implemented to stimulate spending during a recession.
E) The province of Ontario building new hockey rinks to encourage healthier living.

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