Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic objectives such as price stability,high rates of economic growth,and high employment.
A)taxes; interest rates
B)taxes; the money supply
C)interest rates; money supply
D)taxes; expenditures

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending and taxes. Therefore, the best choice is D, which consists of taxes and expenditures. The other choices are not accurate - interest rates are part of monetary policy, and the money supply is also related to monetary policy, not fiscal policy.

Fiscal Policy Is Defined as Changes in Federal ________ and ________

Fiscal Policy Is Defined as Changes in Federal and