Fiscal policy involves the government determining:
A)market interest rates.
B)the money supply growth rate.
C)taxation and government spending levels.
D)the money supply.
E)the rate of inflation.

Question

Quizplus · Accepted Answer

Fiscal policy involves the government's use of taxation and government spending levels to influence the economy. Market interest rates and the money supply growth rate are part of monetary policy, which is controlled by central banks. The money supply and inflation can also be influenced by monetary policy.

Fiscal Policy Involves the Government Determining