Fiscal policy involves discretionary changes in
A)interest rates.
B)exchange rates.
C)income tax rates.
D)the rate of growth of the quantity of money in circulation.

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending and taxation, which can affect the economy's level of output and employment. Changes in income tax rates fall within fiscal policy's purview. The other choices are more closely associated with monetary policy.

Fiscal Policy Involves Discretionary Changes in