Asked by

Mirna Ayach
on Nov 11, 2024

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The term fiscal policy refers to:

A) the amount of physical output produced by firms.
B) the means by which government policy makes firms more productive.
C) the avenue by which government influences credit markets.
D) spending and taxing by governments.
E) a tool of government that works in the opposite direction of monetary policy.

Fiscal Policy

The use of government purchases, transfer payments, taxes, and borrowing to influence economy-wide variables such as inflation, employment, and economic growth.

Monetary Policy

Regulation of the money supply to influence economy-wide variables such as inflation, employment, and economic growth.

Taxing

Is the act of imposing charges on individuals or corporations by government entities to raise revenue for public expenditures.

  • Understand the concept and roles of fiscal policy in an economy.
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Zayda RodriguezNov 13, 2024
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