Fiscal policy involving _____ is designed to influence business cycle fluctuations.
A) the taxation of income
B) government spending
C) government borrowing
D) taxation,government spending,and borrowing

Question

Quizplus · Accepted Answer

Fiscal policy involves the government's use of taxation, government spending, and borrowing to influence the economy's performance. By changing tax rates and government spending levels, the government can affect aggregate demand, which can lead to economic growth or contraction. Additionally, changes in borrowing levels can have an impact on government debt, which can also influence the economy's overall health. Therefore, using all three tools of fiscal policy is the most effective way to influence business cycle fluctuations.

Fiscal Policy Involving _____ Is Designed to Influence Business Cycle