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Fiscal Policy Refers To

Question 20

Multiple Choice

Fiscal policy refers to:


A) changes in government purchases or taxes that have the effect of destabilizing the economy
B) the authority that the Prime Minister has to change personal income tax rates
C) changes in taxes and government purchases made by legislation for the purpose of stabilizing the economy
D) the changes in taxes and transfers that occur as output changes
E) changes in the money supply and interest rates by the Bank of Canada

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