Fiscal policy includes
A) only decisions related to the value of transfer payments and tax revenue.
B) only decisions related to government expenditure on goods and services and the value of transfer payments.
C) decisions related to government expenditure on goods and services, the value of transfer payments, and tax revenue.
D) only decisions related to government expenditure on goods and services.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the decisions made by the government with regard to its spending on goods and services, transfer payments, and tax revenue. Therefore, option C is the correct answer. Options A and D are incorrect because they do not encompass all aspects of fiscal policy, while option B only includes government expenditure and transfer payments, but not tax revenue.

Fiscal Policy Includes