When a government changes its fiscal policy,it is

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When a government changes its fiscal policy, it is changing government spending and/or tax rates to achieve some objective. Fiscal policy involves using government spending and taxation to influence the economy. By increasing or decreasing spending and taxes, the government can stimulate or slow down economic growth, change the level of inflation, and affect employment levels. In contrast, options A, B, D, and E refer to different aspects of monetary policy, which involves changing the money supply, interest rates, and exchange rates to influence the economy.

When a Government Changes Its Fiscal Policy,it Is