c) Medium-term fiscal policy statement. The Justice Department fines a financial company for insider trading B. An example of expansionary fiscal policy would be A … Rating. The act extended many pre-existing tax breaks … D. The Federal Reserve reduces the reserve requirement to 11%. The two major examples of expansionary fiscal policy are tax cuts and increased government spending. Expansionary fiscal policy works fast if done correctly. asked Jul 15 in Political Science by sunangel. d) Short-term fiscal policy statement. 13. An example of expansionary fiscal policy would be. answer choices . D. Setting up an unemployment insurance program. Which of the following is an example of a discretionary fiscal policy action? Tags: Question 7 . What is the primary purpose of taxation? Fiscal policy is the term used to describe how governments use taxation and government spending to manage the economy. Decreasing corporate income tax rates. incom Get an answer. Explanation: 0.0 0 votes 0 votes Rate! Fiscal policy must be designed to be performed in two ways-by expanding investment in public and private enterprises and by diverting resources from socially less desirable to more desirable investment channels. cutting government spending. b. a contractionary fiscal policy. 0 votes. Increasing social security tax rates. All of the above. cutting prices of consumer goods. principles-of-economics; 0 Answer. 0 votes. d.All of the above e.None of the above b. d. The president expands the money supply. a) Corporate tax receipts. See answers (1) Ask for details ; Follow Report Log in to add a comment What do you need to know? 1 Answer/Comment. Fiscal Policy Example. Purchasing fighter planes from a U.S. manufacturer. Fiscal policy is a key tool of macroeconomic policy, and consists of government spending and tax policy. Allowing workers to bargain collectively. Thanks Comments; Report Log in to add a comment Looking for something else? B. If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is . A tax break given to farmers for producing certain crops B. ADVERTISEMENTS: They are: 1. A. When government expenditure on goods and services increases, or tax revenue collection decreases, it is called an expansionary or reflationary stance. a. decreasing taxes b. decreasing government spending c. increasing government transfers d. increasing interest rates e. expansionary fiscal policy 3. cutting production of consumer goods. Fed Government Public Firms 3. Businesses become more confident about the economy and increase investment by $3 billion. Answer 0. albertoaleman. C. Congress reduces individual income taxes by 10%. A) increasing government spending to deal with a recession B) a decrease in tax revenues as taxpayers' incomes decrease C) increasing the minimum wage rate D) raising regulations in the health care industry. Other examples include extending tax cuts to counteract a cut in government spending to avoid causing an economic recession. Solution for Which of the following is an example of active fiscal policy? Updated 9/23/2019 1:57:44 PM. Answer : c a. asked Jul 14, 2016 in Economics by Fast_Foot. A. Get the detailed answer: Which of the following is an example of a discretionary fiscal policy?a. Find more answers. Rate! cutting taxes. For example, government spending should be directed toward hiring workers, which immediately creates jobs and lowers unemployment. a. Likewise, a government might engage in public spending in order to increase an economy 's cash flow during times of recession. answered Jul 19 by Yotun . -raising taxes in order to cover a budget deficit-preventing unions from going on strike -increasing the level of the minimum wage -restricting the amount of money that banks can lend . Fiscal policy, measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. Which one of the following is an example of fiscal policy? 2 years ago. Which of the following pairs best fit with fiscal policy? Which of the following government actions is an example of fiscal policy? d. it is a faster process than fiscal policy. Best answer. public good private good taxes fiscal policy. Which of the following is an example of a fiscal policy? a.Government expenditures rise during a recession because unemployment insurance benefits increase. Congress eliminates regulations, making business expansion easier. Which of the following is an example of fiscal policy being used in the US? a tax cut passed by Congress to fight a recessionb. c. Congress manipulates public spending or taxing. A. increase in taxes B. stimulus package C. increasing the money supply D. lowering interest rates B. stimulus package 14 How are the increases in government spending or the decreases in taxes paid for? c. it is a slower process than fiscal policy. Taxes and government spending Open market operations and reserve requirement Taxes and open market operations Open market operations and government spending 2. Who uses fiscal policy? A. d) Interest receipts. Increasing taxes to pay for greater military spending. Which of the following is an example of active fiscal policy? b) Dividends and profits. A tax assessed on companies for negative externalities , like polluting The National Reserve creates a new fiscal policy measure to stabilize inflation Asked 9/23/2019 1:42:44 PM. There are several component policies or a mix of policies that contribute to the fiscal policy. A. Contractionary fiscal policy is decreased government spending or increased taxation. Looking for something else? The objective of fiscal policy is to maintain the condition of full employment, economic stability and to stabilize the rate of growth. The Bank of England imposing controls on bank lending b. 8. These include subsidy, taxation, welfare expenditure, etc. An income tax rebate is an example of a. an expansionary fiscal policy. Monetary policy differs from fiscal policy in that a. it has to be exercised by the legislature. New answers. Businesses become more confident about the economy and increase investment by $3 billion. Examples of fiscal policy include changing tax rates and public spending to curb inflation at a macroeconomic level. Ask your question. C. Lowering the interest rate on loans to corporations. a. increasing taxes b. increasing government spending c. decreasing government transfers d. decreasing interest rates e. increasing the money supply. B. c.Congress passes a tax cut after the beginning of a recession with the aim of stimulating the economy. Which of the following is an example of expansionary fiscal policy? Which of the following is a fiscal policy that is appropriate to combat inflation? A slide presentation will accompany today's webcast, which is … b) Fiscal policy strategy statement. 120 seconds . e. None of the above. c) Disinvestment receipts. Which of the following is an example of a fiscal policy? b. the policy goals are very different. Which of the following is an example of a government subsidy? A more recent example of expansionary monetary policy was seen in the U.S. in the late 2000s during the Great Recession. A. Fiscal measures are frequently used in tandem with monetary policy to achieve certain goals. Fiscal policy was shown after the U.S. Congress passed the American Taxpayer Relief Act of 2012. public-policy-and-public-administration ; 0 Answer. In an example of fiscal policy, in order to curb price inflation, which is associated with high levels of consumer spending, a government may institute higher taxes resulting in lower levels of disposable income. The stock exchange adapts its trading rules. Which of the following is an example of discretionary fiscal policy? Question . g. Log in for more information. Search for an answer or ask Weegy. Higher taxes or lower government expenditure is called contractionary policy. Group of answer choices. Government expenditures rise during a recession because unemployment insurance… a. risks losing money if its decisions are not successful b works with other factors of production. As housing prices began … B. In view of such a situation, let us understand fully problems and limitations which are associated with a fiscal policy. Learn more about fiscal policy in this article. Answer : d. Question 11 : Which of the following is not a component of revenue receipts of the union government? Q. Congress eliminates regulations, making business expansion easier. Here are examples, how it works, and why it's seldom used. b.The government runs a budget deficit during a recession because income tax collections fall. Ishm. C. Congress reduces individual income taxes by 10%. Because fiscal policy tends to be the prerogative of the executive and legislative functions, it’s often more subjective to political influence than monetary policy, which is generally handled by central banks. Match the following statements to the proper terms. Borrowing 15 What does expansionary fiscal policy lead to an increase in? The creation of tax exempt Individual Savings Account (ISA’s) c. The removal of regulations which restrict Sunday trading d. The removal of foreign exchange controls which restrict the transfer of currencies between countries SURVEY . a. increase taxes b. decrease gov't spending c. increase gov't spending d. increase taxes and decrease gov't spending equally? 3.which is an example of a fiscal policy ? Which of the following is an example of expansionary fiscal policy? The fire department would is an example of _____. D. The Federal Reserve reduces the reserve requirement to 11%. Answer: 1. answer choices . The Federal Reserve changes the discount rate. Some of the major limitations of fiscal policy are as follows: Although fiscal policy gained prominence during world depression of 1930’s, yet its practical application has a number of problems or limitations. The fire department would is an example of public good. c. Tax cuts can put money into the hands of consumers if the government can send out rebate checks right away. asked by Maria on January 8, 2013; Economics. 1 See answer Answer 2. georgepacheco +1 kvargli6h and 1 other learned from this answer Answer: increased government spending. Also, there are a certain investment and disinvestment policies and debt and surplus management that contributes to fiscal policies. Which of the following is an example of expansionary fiscal policy? Play this game to review Government. Objectives of a Fiscal Policy