Fiscal policy is
A) the money supply policy that the Fed pursues to achieve particular economic goals.
B) the spending and tax policy that the government pursues to achieve particular macroeconomic goals.
C) the investment policy that businesses pursue to achieve particular macroeconomic goals.
D) the spending and saving policy that consumers pursue to achieve particular macroeconomic goals.
E) none of the above

Question

Quizplus · Accepted Answer

Fiscal policy involves the government's spending and tax policies to influence the economy. The other options involve monetary policy, business investment policy, and consumer behavior, none of which refer to fiscal policy.

Fiscal Policy Is