Senator Spendital recently made a speech condemning the continuous deficits in the federal budget. He is now proposing an increase in tax rates to raise more revenue for the government and thus gradually reduce the size of the national debt over a period of several years. The strategy Senator Spendital is proposing is a common type of monetary policy.

Question

Quizplus · Accepted Answer

When the government changes the level of taxes and government expenditures, its actions are referred to as fiscal policy.

Senator Spendital Recently Made a Speech Condemning the Continuous Deficits