An example of fiscal policy occurs when the government decreases corporate income taxes.
Fiscal policy is the use of government taxes,including taxes on corporate income and spending to alter macroeconomic outcomes.

Question

Quizplus · Accepted Answer

The statement correctly defines fiscal policy and provides an example of it by stating how government can use tax cuts (decreasing corporate income taxes) to influence the economy.

An Example of Fiscal Policy Occurs When the Government Decreases