The use of government purchases, transfer payments, and taxes to influence the level of economic activity is called
A) monetary policy.
B) fiscal policy.
C) congressional policy.
D) Federal Government policy.

Question

Quizplus · Accepted Answer

The use of government purchases, transfer payments, and taxes are all part of fiscal policy, which involves government actions to influence the level of economic activity. Monetary policy, on the other hand, involves actions taken by a country's central bank to manage the money supply and achieve macroeconomic objectives such as controlling inflation or promoting economic growth. Congressional policy and Federal Government policy are not specific terms related to economic policy.

The Use of Government Purchases, Transfer Payments, and Taxes to Influence