The government's use of taxing and spending powers to manipulate the economy is called monetary policy.

Name: The government's use of taxing and spending powers to manipulate the economy is called monetary policy.
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The government's use of taxing and spending powers to manipulate the economy is called fiscal policy. Monetary policy involves actions taken by central banks to influence the money supply and interest rates in order to achieve macroeconomic objectives.

The Government's Use of Taxing and Spending Powers to Manipulate