Fiscal policy refers to the idea that aggregate demand is affected by changes in
A)the money supply.
B)government spending and taxes.
C)trade policy.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the government's use of spending and tax policies to influence the economy's overall demand. Therefore, option B, which is government spending and taxes, is the correct answer. The money supply and trade policy fall under monetary and trade policies, respectively, and are not part of fiscal policy.

Fiscal Policy Refers to the Idea That Aggregate Demand Is