The type of policy that involves changes in taxes or spending by the federal government is known as:

Question

Quizplus · Accepted Answer

Fiscal policy is the type of policy that involves changes in taxes or spending by the federal government. This policy can be used to stabilize the economy, address inflation or recession, and promote economic growth. Monetary policy, on the other hand, involves changes in interest rates and the money supply by the central bank. Strategic financial policy is not a recognized term in economics and federal policy can refer to a wide range of policies implemented by the federal government, making this option too broad.

The Type of Policy That Involves Changes in Taxes or Spending