________ consists of government spending and taxation decisions to control inflation, encourage economic growth, and balance the Federal budget.

Question

Quizplus · Accepted Answer

Fiscal policy consists of government spending and taxation decisions made to stabilize the economy by controlling inflation, encouraging economic growth, and balancing the Federal budget. Option A is incorrect because national budgeting is a broader term that may refer to the budgeting process for any level of government. Option C is incorrect because expansionary monetary policy refers to actions taken by a central bank to stimulate the economy by increasing money supply, while Option D does not relate to the question at all.

________ Consists of Government Spending and Taxation Decisions to Control