CIMAPRA17-BA1-1 Exam - Topic 2 Question 112 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 112
Topic #: 2

[All CIMAPRA17-BA1-1 Questions]

Which of the following best defines a fiscal policy?

AA policy that increases government spending to increase national income

BA policy which seeks to influence the economy through manipulation of government spending and taxation

CA policy aimed at influencing the level of aggregate demand in the economy

DA policy which controls inflation by controlling the amount of money in the economy

Show Suggested Answer

Suggested Answer: B

by Jutta at Jun 13, 2025, 04:47 AM

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Callie

5 months ago

I always thought fiscal policy was just about government spending.

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Hoa

6 months ago

I think C is more accurate, it focuses on aggregate demand.

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Doug

6 months ago

A is too narrow, fiscal policy is broader than just spending.

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Frederica

6 months ago

Wait, D sounds like monetary policy to me, not fiscal!

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Tyra

6 months ago

Definitely B, it covers both spending and taxation.

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Elizabeth

6 months ago

I keep mixing up fiscal policy with monetary policy. Option D sounds like it’s more about controlling money supply, not fiscal policy.

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Cherelle

7 months ago

I feel like option A is too narrow since it only talks about increasing spending. Fiscal policy is broader, right?

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Martha

7 months ago

I remember we discussed how fiscal policy can influence aggregate demand, which makes me lean towards option C.

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Francesco

7 months ago

I think fiscal policy is about government spending and taxation, so maybe option B? But I'm not entirely sure.

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Alaine

7 months ago

Wait, is fiscal policy the same as monetary policy? I'm getting a bit mixed up on the differences between the two. Let me re-read the question and options closely.

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Alison

8 months ago

Okay, I've got this. Fiscal policy is all about how the government uses its spending and tax policies to influence the economy. I'm pretty confident I can identify the best definition here.

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Kanisha

8 months ago

Hmm, I'm a bit unsure about this one. I know fiscal policy has to do with the government's budget, but I'm not totally clear on the specifics. I'll have to think this through carefully.

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Dion

8 months ago

This seems like a straightforward question about fiscal policy. I'll focus on the key elements of fiscal policy - government spending and taxation.

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Adelina

10 months ago

Haha, option D sounds like something straight out of a monetary policy textbook. Fiscal policy and monetary policy are two different beasts!

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Leatha

8 months ago

C) A policy aimed at influencing the level of aggregate demand in the economy

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Billy

8 months ago

B) A policy which seeks to influence the economy through manipulation of government spending and taxation

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Brittani

10 months ago

A) A policy that increases government spending to increase national income

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Ciara

11 months ago

Option C is a bit too narrow. Fiscal policy is broader than just influencing aggregate demand.

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Omega

10 months ago

B: I agree, fiscal policy is definitely more than just influencing aggregate demand.

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Harris

10 months ago

A: I think B is the best option. It covers both government spending and taxation.

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Rosita

11 months ago

Definitely B. Fiscal policy is the government's way of managing the economy through its financial tools, like taxes and spending.

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Amie

10 months ago

Yes, fiscal policy is definitely about manipulating government spending and taxation.

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Peggy

10 months ago

I think it's more about influencing the economy through government spending and taxation.

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Jade

10 months ago

I agree, fiscal policy is all about government spending and taxation.

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Sylvia

11 months ago

I'm not sure, but I think it's either A or B.

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Helaine

11 months ago

I agree with Aleisha, fiscal policy is about government spending and taxation.

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Aleisha

11 months ago

I think the answer is B.

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Jennie

12 months ago

I think option B is the best definition. Fiscal policy is all about the government's use of spending and taxation to influence the economy.

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Carey

11 months ago

I believe option A is the best choice. Fiscal policy increases government spending to boost national income.

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Ezekiel

11 months ago

I think option C is more accurate. Fiscal policy is aimed at influencing the level of aggregate demand in the economy.

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Jacqueline

11 months ago

I agree, option B is the correct definition. Fiscal policy is all about government spending and taxation.

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