Which of the following relies on government taxes and spending to change macro outcomes?

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending and taxes to influence the economy's macro outcomes, such as economic growth, inflation, and unemployment. Monetary policy, on the other hand, involves changes in the money supply and interest rates, while income policy refers to government regulations aimed at influencing income distribution. Foreign-trade policy focuses on the regulations and agreements that affect international trade. Only fiscal policy relies on government taxes and spending to influence macro outcomes.

Which of the Following Relies on Government Taxes and Spending