Fiscal policy entails changes in
A) the quantity of money.
B) the MPC.
C) government spending and taxes.
D) the multiplier.

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending and taxes, and does not necessarily involve changes in the quantity of money or the multiplier. The MPC (marginal propensity to consume) is a concept related to consumer behavior rather than government policy.

Fiscal Policy Entails Changes in