Changing government spending and taxes to affect overall spending is use of _____ policy.

Question

Quizplus · Accepted Answer

Fiscal policy is the use of government spending and taxation to influence the economy. Tax-and-spend is a term used to describe a government policy that relies on high taxes to fund high levels of government spending, but it is not a specific type of policy. Monetary policy refers to the actions of central banks to control the money supply and interest rates, but it does not involve government spending or taxation. Free-trade policy refers to the absence of restrictions on international trade, but it is not related to government spending or taxation.

Changing Government Spending and Taxes to Affect Overall Spending Is