The use of taxing and spending powers to shape the economy is part of ________ policy.
A)fiscal
B)monetary
C)distributive
D)redistributive

Question

Quizplus · Accepted Answer

Fiscal policy refers to the government's use of taxation and public spending to influence the economy. It involves decisions about how much money the government should spend, how it should be spent, and how to finance that spending. By using fiscal policy, governments can stimulate or slow down economic activity and achieve a variety of economic goals, such as promoting growth, reducing unemployment, or stabilizing prices. Monetary policy, on the other hand, refers to the actions of a central bank to manage the money supply and interest rates to influence the economy. Distributive and redistributive policies refer to the distribution of resources and services within society and are not directly related to taxation and spending decisions.

The Use of Taxing and Spending Powers to Shape the Economy