When the government conducts fiscal policy, it makes up for a decrease in $\vec { C }$ with:
A) an increase in $\vec { G }$ .
B) a decrease in $\overrightarrow { N X }$.
C) an increase in $\vec{ M }$.
D) a decrease in $\bar { Y } _ { R }$.

Question

Quizplus · Accepted Answer

Fiscal policy involves adjusting government spending ($\vec { G }$) to influence the economy, often to counteract changes in consumption ($\vec { C }$).

When the Government Conducts Fiscal Policy, It Makes Up for a Decrease