Fiscal policy involves
A) the use of interest rates to influence the level of GDP.
B) the use of tax and spending policies by the government.
C) decreasing the role of the Federal Reserve in the everyday life of the economy.
D) the use of tax and money policies by the government to influence the level of interest rates.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation policies to influence economic conditions, including demand for goods and services, employment, and inflation. It does not directly involve interest rates or the Federal Reserve's monetary policy actions.

Fiscal Policy Involves