Fiscal policy is used primarily to increase or decrease interest rates.

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending and taxation policies to achieve macroeconomic goals such as economic growth, low unemployment, and stable prices. It is not primarily used to increase or decrease interest rates, which is a function of monetary policy. Monetary policy is controlled by a central bank, such as the Federal Reserve in the United States.

Fiscal Policy Is Used Primarily to Increase or Decrease Interest