Which of these policies are expenditure-changing policies?
A) currency devaluation and revaluation
B) import quotas and tariffs
C) monetary and fiscal policy
D) wage and price controls

Question

Quizplus · Accepted Answer

Monetary and fiscal policy are expenditure-changing policies as they can alter the level of aggregate demand in an economy by changing government spending, taxes, interest rates, and the money supply. Currency devaluation and revaluation can also affect expenditures by changing the prices of imports and exports, but they are more often considered to be exchange rate policies rather than expenditure-changing policies. Import quotas and tariffs are trade policies that can affect expenditures by restricting imports, but they do not directly affect overall aggregate demand. Wage and price controls aim to control inflation by limiting price or wage increases, but they do not directly affect aggregate demand or expenditures either.

Which of These Policies Are Expenditure-Changing Policies