An example of fiscal policy is
A) an increase in government spending.
B) a reduction in investment spending by the private sector.
C) an increase in autonomous spending by consumers.
D) a cost-of-living adjustment in Social Security payments to the elderly.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation to influence the economy. An increase in government spending is an example of expansionary fiscal policy, which can stimulate economic growth by increasing demand for goods and services.

An Example of Fiscal Policy Is