Setting government spending and taxes in an effort to change overall spending in an economy called:

Question

Quizplus · Accepted Answer

Fiscal policy involves the government adjusting its spending and taxation policies in order to influence overall spending in the economy. Monetary policy, on the other hand, involves manipulating the money supply and interest rates to achieve similar ends. Investment and the stock market are not directly related to government spending and taxes.

Setting Government Spending and Taxes in an Effort to Change