Fiscal policy is
A) the deliberate control of the money supply to achieve macroeconomic goals.
B) the use of the government's regulatory powers to improve economic efficiency.
C) the operation of business enterprises by the government.
D) the use of government taxation and expenditures to achieve macroeconomic goals.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government taxation and expenditures to achieve macroeconomic goals, such as promoting economic growth, reducing unemployment, and controlling inflation. The government can increase spending and/or reduce taxes to stimulate economic growth, or decrease spending and/or increase taxes to combat inflation.

Fiscal Policy Is