"Fiscal Policy" is the federal government's plan for
A)international trade, designed to balance exports and imports.
B)spending and taxes, designed to influence the level of aggregate demand.
C)manipulating the money supply and the control of interest rates.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the tools and strategies used by the government to manage the economy through changes in spending and taxation policies. It is aimed at influencing the level of aggregate demand, which affects economic growth, inflation, and employment. Other options mentioned, such as international trade and monetary policy, are also important for economic management, but they are separate areas of policy.

"Fiscal Policy" Is the Federal Government's Plan for