'Fiscal policy' refers to the:
A)government's ability to regulate the functioning of financial markets.
B)policy by the Reserve Bank of Australia to affect the cash rate.
C)techniques used by firms to reduce their tax liability.
D)spending and tax policies used by the government to influence the level of economy activity.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the actions taken by the government in relation to taxation and spending to influence the level of economic activity. It includes decisions such as increasing government spending to stimulate the economy or reducing taxes to increase consumer spending.

'Fiscal Policy' Refers to The