Fiscal policy refers to the government's attempt at stabilizing the economy through the use of changes in

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Quizplus · Accepted Answer

Fiscal policy involves using changes in taxes and government spending to influence the economy. This can include increasing government spending during a recession to stimulate demand, or decreasing taxes to encourage consumer spending and investment. Interest rates, borrowing, wage rates, employment contracts, exchange rates, and foreign trade are not usually within the scope of fiscal policy.

Fiscal Policy Refers to the Government's Attempt at Stabilizing the Economy