Fiscal policy refers to the use of which government tools to influence the economy?

Fiscal policy refers to the use of which

Multiple choice — select the best answer

AGovernment spending and taxation
BInterest rates and money supply
CReserve requirements and open market operations
DCurrency exchange rates and tariffs

✓ Correct answer: A. Government spending and taxation Fiscal policy is conducted by the legislative and executive branches through decisions about government spending levels and tax rates. Monetary policy, by contrast, involves control of the money supply and interest rates by the central bank.

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Topic: Economic Factors

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