Fiscal policy includes
A)Open market operations.
B)Deregulation.
C)Increasing or decreasing the discount rate.
D)Discretionary government spending.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation to influence the economy. Discretionary government spending is one tool of fiscal policy that can be used to stimulate or slow down economic activity. Open market operations and changing the discount rate are tools of monetary policy, not fiscal policy. Deregulation refers to reducing government regulations on businesses and industries, but it is not directly related to fiscal policy.

Fiscal Policy Includes