Which of the following is true of fiscal policy?

Question

Quizplus · Accepted Answer

Fiscal policy involves the government's use of taxation and spending to influence the economy, particularly in the areas of employment, inflation, and growth. This approach is used to stabilize the economy during recessionary or inflationary periods by adjusting government expenditures and revenue collections. It is not controlled by the Federal Reserve Bank and is not typically popular with conservatives who prefer limited government intervention in the economy. Additionally, during economic slowdowns, the government may implement expansionary fiscal policies, which involve increased government spending and reduced taxation, rather than tightening its belt on spending.

Which of the Following Is True of Fiscal Policy