2
practice examMultiple Choice

Practice Exam

Question 2 • Personal Finance and Economics

The government of Country C has passed a law protecting the physical safety of factory workers. This is an example of

Answer
A
supply and demand.
B
monetary policy.
C
fiscal policy.
D
regulatory policy.

Explanation

A law that sets safety requirements for factory workers is a government rule governing how businesses operate. Such rules are regulatory policy. Fiscal policy concerns government spending and taxes, while monetary policy concerns the money supply and interest rates.

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