Changes in government taxes and purchases that are intended to achieve macroeconomic policy objectives refer to
A) fiscal policy.
B) monetary policy.
C) quantitative analysis.
D) government transparency.

Question

Quizplus · Accepted Answer

Fiscal policy refers to government actions related to taxes and spending with the goal of influencing the economy's performance. It includes changes in government purchases (spending) and taxes, such as increasing spending on infrastructure projects or lowering taxes to stimulate economic growth. Monetary policy, on the other hand, involves actions by the central bank to control the money supply and interest rates. Quantitative analysis is a method used to analyze data and make decisions, while government transparency refers to the level of openness and accountability of the government in its actions and decision-making processes.

Changes in Government Taxes and Purchases That Are Intended to Achieve