Chartered Financial Analyst Level 1
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A fiscal policy tool that can most promptly influence spending is most likely:
A
Indirect taxes, as they can be adjusted swiftly upon announcement and directly impact spending behavior while generating government revenue with minimal cost.
B
Exchange rate targeting, which is a monetary policy tool often employed by developing economies to manage their currency's value.
C
Capital expenditure plans, which typically require extended periods for formulation and implementation, delaying their economic impact.