The government of Hidoria, a country in Eastern Europe, has increased its spending by causing a budget deficit. The increased government spending has benefitted construction firms in Hidoria. In this scenario, the government's action illustrates the use of _____.

Question

Quizplus · Accepted Answer

The government's action of increasing spending to influence the economy is an example of fiscal policy, which involves government spending and taxation decisions to influence economic conditions.

The Government of Hidoria, a Country in Eastern Europe, Has