The goal of fiscal policy is to ________,and typically focuses on ________.
A) balance the federal budget; tax rates and tax revenues
B) stabilize the supply of money in the economy; price stability
C) reduce the severity of economic fluctuations; employment and production
D) eliminate balance of payments deficits or surpluses; exchange rate stability

Question

Quizplus · Accepted Answer

Fiscal policy aims to use government spending and taxation to influence economic activity and reduce the severity of economic fluctuations, with a focus on promoting employment and production. Options A, B, and D do not accurately reflect the main goal or focus of fiscal policy.

The Goal of Fiscal Policy Is to ________,And Typically Focuses