Fiscal policy includes government changes in
A) interest rates.
B) the supply of money.
C) exports.
D) imports.
E) government purchases.

Question

Quizplus · Accepted Answer

Fiscal policy refers to changes made by the government in its spending and taxation policies to achieve macroeconomic goals such as full employment, stable prices, and economic growth. Government purchases are a key component of fiscal policy as they directly impact aggregate demand in the economy. Changes in interest rates and the supply of money are monetary policy tools controlled by central banks, while exports and imports refer to international trade flows and are not directly controlled by the government's fiscal policy.

Fiscal Policy Includes Government Changes in