Fiscal policy refers to the government's attempt at regulating the economy through the use of changes in:

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of changes in government spending and taxation to influence and stabilize the economy. Changes in interest rates and borrowing are part of monetary policy, while wage rates and contracts are determined by the labor market. Exchange rates and foreign trade are also not directly controlled by fiscal policy, but may be affected by government actions such as tariffs or trade agreements.

Fiscal Policy Refers to the Government's Attempt at Regulating the Economy