Using the spending and taxing powers of government to stabilize the economy is called fiscal
A) fitness.
B) policy.
C) federalism.
D) finance.
E) reserve.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation to influence the economy. By increasing government spending and decreasing taxes during times of economic downturns, fiscal policy tries to stimulate the economy and create jobs. Conversely, during periods of economic boom, fiscal policy might involve decreasing government spending and increasing taxes in order to prevent inflation and maintain economic stability.

Using the Spending and Taxing Powers of Government to Stabilize