Fiscal policy is defined as
A)the design of a tax system to transfer income from the rich to the poor.
B)the use of Congressional power to pursue social and political goals.
C)the discretionary changing of government expenditures and/or taxes to achieve national economic goals.
D)the use of the taxing power of the government to redistribute wealth in a socially acceptable manner.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation to influence the economy. It involves making deliberate changes in government spending levels and tax rates to achieve specific economic outcomes, such as promoting economic growth, reducing unemployment, or controlling inflation. The other options either incorrectly focus on income redistribution or social and political goals, or are too broad in scope to accurately define fiscal policy.

Fiscal Policy Is Defined as