The government wants to discourage consumer spending through raising income taxes. This is an example of
A) an incomes policy.
B) a monetary policy.
C) a supply-side policy.
D) a fiscal policy.

Question

Quizplus · Accepted Answer

Fiscal policy refers to government policies that affect spending, taxation, and borrowing. In this case, the government is using a fiscal policy to discourage consumer spending by raising income taxes.

The Government Wants to Discourage Consumer Spending Through Raising Income