Fiscal policy involves the government's use of ________ to affect economic outcomes.
A)exchange rate changes
B)interest rate changes
C)price level changes
D)private investment expenditures
E)expenditures and taxation

Question

Quizplus · Accepted Answer

Fiscal policy involves the government's use of expenditures (spending) and taxation to affect economic outcomes. The government can increase spending or decrease taxes to stimulate the economy or decrease spending or increase taxes to cool down an overheated economy.

Fiscal Policy Involves the Government's Use of ________ to Affect