Fiscal policy is the
A) policy that corporations follow to maintain their dividends when profit rises.
B) name given to Federal Reserve Banks' efforts to control interest rates.
C) process by which prices are established in the stock market.
D) use of government spending and taxation for stabilization purposes.
E) international trade and commerce policy pursued by a nation.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation to influence and stabilize the economy. It involves the government adjusting its spending levels and tax rates to influence economic activity and achieve desirable outcomes. Fiscal policy typically aims to promote growth, reduce unemployment, and control inflation.

Fiscal Policy Is the