What is fiscal policy?
A)It is the government's policy on spending.
B)It is the government's policy on taxation.
C)It is the government's policy on both spending and taxation.
D)It is the central bank's policy on interest rates.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the government's policy on both spending and taxation. It involves the use of government spending and taxation to influence the economy, such as stimulating economic growth or curbing inflation. Therefore, option C is the correct answer as it includes both spending and taxation.

What Is Fiscal Policy