Questions: Apex Learning - Caurses 3.2.4 Quiz: Fiscal Policy Question 5 of 10 Which situation most directly illustrates a possible outcome of a fiscal policy? A. The government decides it is time to print a great deal of new money. B. Struggling farmers receive less assistance from the government. C. New environmental regulations make drinking water in a city safer. D. A company decides to expand its operations into several new states. PREVIOUS Search

The answer is B: Struggling farmers receive less assistance from the government.

Explanation for each option:

A. The government decides it is time to print a great deal of new money.

• This option relates more to monetary policy rather than fiscal policy. Fiscal policy involves government spending and taxation decisions, while printing money is typically a function of monetary policy managed by a central bank.

B. Struggling farmers receive less assistance from the government.

• This option directly illustrates a fiscal policy outcome. Fiscal policy involves government decisions on spending and taxation. Reducing assistance to farmers is a change in government spending, which is a component of fiscal policy.

C. New environmental regulations make drinking water in a city safer.

• This option pertains to regulatory policy rather than fiscal policy. While regulations can have economic impacts, they are not directly related to government spending or taxation.

D. A company decides to expand its operations into several new states.

• This option is related to business decisions and does not directly illustrate a fiscal policy outcome. Fiscal policy would involve government actions, not private company decisions.

Summary: The most direct illustration of a possible outcome of fiscal policy is when struggling farmers receive less assistance from the government, as it involves a change in government spending.