Fiscal policy involves which of the following?
A)tax policy
B)interest rates
C)buying and selling government-agency bonds
D)none of the above

Question

Quizplus · Accepted Answer

Fiscal policy involves the use of government spending and taxation to influence the economy. Tax policy is one of the main tools used in fiscal policy to stimulate or slow down economic growth. Interest rates are part of monetary policy, not fiscal policy. Buying and selling government-agency bonds is also part of monetary policy, not fiscal policy.

Fiscal Policy Involves Which of the Following