Fiscal policy includes:

Question

Quizplus · Accepted Answer

Fiscal policy involves the government's use of spending and taxation to influence the economy. An increase in government spending is an example of expansionary fiscal policy, which can stimulate economic growth and increase aggregate demand. Decreasing immigration restrictions or import barriers would not be considered fiscal policy. Increasing the discount rate would be a monetary policy tool used by the central bank, not a fiscal policy tool controlled by the government.

Fiscal Policy Includes