Fiscal policy ______.

Question

Quizplus · Accepted Answer

Fiscal policy can be used to increase economic activity by increasing government spending or lowering taxes, which can stimulate consumer spending and business investment. It can also involve reducing spending or raising taxes during times of inflation to prevent the economy from overheating. The effect on the money supply depends on the specific actions taken by the government, but it is not the primary focus of fiscal policy. While fiscal policy can contribute to national debt, it is not necessarily always the case.

Fiscal Policy ______