Fiscal policy is concerned with:
A) encouraging businesses to invest.
B) regulation of net exports.
C) changes in government spending and/or tax revenues.
D) expanding and contracting the money supply.

Question

Quizplus · Accepted Answer

Fiscal policy involves the government's decisions regarding changes in spending and/or tax revenues in order to influence the economy. The goal is to either stimulate economic growth or slow it down in response to various economic conditions. A is incorrect because that is a goal of monetary policy, not fiscal policy. B and D are also incorrect because they are not direct concerns of fiscal policy.

Fiscal Policy Is Concerned With