Which of the following macroeconomic variables would likely be affected by a fiscal policy?
A)The nominal interest rate
B)The exchange rate
C)The discount rate
D)Employment
E)Money supply

Question

Quizplus · Accepted Answer

Fiscal policy refers to changes in government spending and taxation, which can have a direct impact on employment levels. Therefore, employment is the macroeconomic variable that is most likely to be affected by fiscal policy. The other options listed can be affected by other types of policies, such as monetary policy or exchange rate policies.

Which of the Following Macroeconomic Variables Would Likely Be Affected