Fiscal policy involves the manipulation of ________.
A)U.S.interest rates
B)wages and prices
C)federal government spending and tax revenues
D)the supply of money

Question

Quizplus · Accepted Answer

Fiscal policy involves the government's use of spending and tax policies to influence the level of economic activity. It includes government spending on goods and services (such as infrastructure projects, defense, etc.) and tax revenues collected from individuals and businesses. Fiscal policy can be used to stabilize the economy by increasing government spending during recessions or reducing it during inflationary periods. It can also involve changes in tax rates or tax credits to influence consumer spending and investment. Therefore, choice C is the correct answer.

Fiscal Policy Involves the Manipulation of ________