The government of Ligesia, a country in South America, has lowered its taxes by 25 percent. Consequently, the discretionary income of its citizens has increased, which in turn has increased their private spending. In the given scenario, the government of Ligesia has used _____.

Question

Quizplus · Accepted Answer

The government of Ligesia has used fiscal policy, which involves changes in government spending and taxation to influence the economy. Lowering taxes is a direct application of fiscal policy to increase disposable income and stimulate spending.

The Government of Ligesia, a Country in South America, Has