Which of the following best describes 'fiscal policy'?
Practice Questions
Q1
Which of the following best describes 'fiscal policy'?
Regulation of money supply
Government spending and taxation decisions
Control of interest rates
Management of foreign exchange
Questions & Step-by-Step Solutions
Which of the following best describes 'fiscal policy'?
Step 1: Understand that fiscal policy is related to the government.
Step 2: Recognize that it involves two main actions: spending money and collecting taxes.
Step 3: Know that the purpose of these actions is to influence the economy, which means affecting how much money people have to spend and how businesses operate.
Step 4: Remember that when the government spends more or changes taxes, it can help the economy grow or slow it down.
