The spending and taxing decisions of the Congress and president that affect household and business decisions are called
A)monetary policy.
B)deficit reduction policy.
C)fiscal policy.
D)None of the above

Question

Quizplus · Accepted Answer

Fiscal policy refers to the decisions made by the Congress and president regarding government spending and taxation that can affect the behavior of households and businesses. Monetary policy, on the other hand, refers to the actions taken by a central bank to control the money supply and interest rates in order to achieve macroeconomic goals such as price stability and sustainable economic growth. Deficit reduction policy is a specific type of fiscal policy that aims to reduce the budget deficit or achieve a budget surplus. Therefore, the best choice is C.

The Spending and Taxing Decisions of the Congress and President