Fiscal policy refers to
A) efforts to balance a government's budget.
B) changes in the money supply to achieve particular economic goals.
C) changes in government expenditures and taxation to achieve particular economic goals.
D) the change in private expenditures that occurs as a consequence of changes in government spending.

Question

Quizplus · Accepted Answer

Fiscal policy refers to changes in government expenditures and taxation to achieve particular economic goals, such as stimulating economic growth or controlling inflation. It is one of the tools available to governments to manage their economies. A balanced budget, as in option A, is not necessarily the goal of fiscal policy, and option B refers to monetary policy. Option D is a description of a possible consequence of fiscal policy, but not a definition.

Fiscal Policy Refers to