Use of fiscal policy involves changes in:
A) interest rates.
B) government spending.
C) the quantity of money.
D) the quantity of money and interest rates.

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending, taxation, and transfer payments to affect aggregate demand and stabilize the economy. Interest rates are typically influenced by monetary policy, not fiscal policy. The quantity of money is also influenced by monetary policy, not fiscal policy.

Use of Fiscal Policy Involves Changes In