When the economy falters,people often look to the government to help push the economy forward again.In fact,the government uses many different tools to try to affect the economy.Economists classify these tools on the basis of ________ policy and ________ policy.

Question

Quizplus · Accepted Answer

The government uses monetary policy, which involves changes in interest rates and money supply, and fiscal policy, which involves changes in government spending and taxation, to influence the economy. Therefore, option B, which lists the correct classification of these tools, is the correct answer.

When the Economy Falters,people Often Look to the Government to Help