A decrease in the federal income tax is an example of ______ policy.

Name: A decrease in the federal income tax is an example of ______ policy.
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Fiscal policy refers to the use of government spending and taxation to influence the economy. A decrease in federal income tax is an example of fiscal policy as it involves changing the level of taxation to impact disposable income and, therefore, consumer spending and economic growth.

A Decrease in the Federal Income Tax Is an Example