If Congress increases government spending, it is using
A) monetary policy.
B) supply-side policy.
C) fiscal policy.
D) incomes policy.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation to influence the economy. If Congress increases government spending, it is a form of fiscal policy. Monetary policy refers to the manipulation of interest rates and the money supply by the central bank, which is not within the purview of Congress. Supply-side policy is aimed at increasing the productive capacity of the economy and is typically associated with tax cuts and deregulation, rather than increased government spending. Incomes policy refers to government attempts to control or influence wage and price levels, which is also not related to Congress' power to increase government spending.

If Congress Increases Government Spending, It Is Using