Asked by Valene Canizares on Jun 03, 2024
Verified
Which of the following uses the government's taxing and spending policies to slow down or speed up the economy?
A) Inflation
B) Monetary policy
C) Fiscal policy
D) Interest rates
Fiscal Policy
Government strategies related to taxation and public spending, used to influence the economy and fund public services.
Taxing and Spending
The government's practice of collecting revenues through taxes and deciding on the allocation of these funds for various public expenditures.
- Identify the differences between fiscal and monetary policies, highlighting the responsibilities of the Federal Reserve.
Verified Answer
AN
Andrew NorcrossJun 06, 2024
Final Answer :
C
Explanation :
Fiscal policy involves adjustments in government spending and tax policies to influence economic activity, including efforts to slow down or speed up the economy as needed.
Learning Objectives
- Identify the differences between fiscal and monetary policies, highlighting the responsibilities of the Federal Reserve.