WORLD WAR I
LEAGUE OF NATIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An agreement on international trade
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A treaty that ends a war
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A reduction in the federal income tax
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A cash loan to another country
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Detailed explanation-1: -The correct answer is Interest Rate. Interest Rate does not form part of the fiscal policy of a country. Fiscal policy is the use of government revenue collection (mainly taxes but also non-tax revenues such as divestment, loans) and expenditure (spending) to influence the economy.
Detailed explanation-2: -a tax decrease passed into law by Congress is an example of a discretionary fiscal policy used to correct a recessionary gap.
Detailed explanation-3: -The two major examples of expansionary fiscal policy are tax cuts and increased government spending.
Detailed explanation-4: -Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.