Canadian Securities Course (CSC) Practice Exam · Question
Which of the following is an example of fiscal policy?
Fiscal policy involves the government's decisions regarding taxation and spending to influence the economy. Increasing infrastructure spending is a direct gover
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Question: Which of the following is an example of fiscal policy?
Answer options: ✅ The Government of Canada increasing spending on infrastructure projects.
- The Bank of Canada raising the overnight interest rate.
- A commercial bank adjusting its prime lending rate.
- A corporation issuing new shares to raise capital.
Correct answer: The Government of Canada increasing spending on infrastructure projects.
Explanation: Fiscal policy involves the government's decisions regarding taxation and spending to influence the economy. Increasing infrastructure spending is a direct government action.
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