If Congress decreases government spending, it is using
A) fiscal policy.
B) supply-side policy.
C) monetary policy.
D) incomes policy.

Question

Quizplus · Accepted Answer

When Congress decreases government spending, it is changing its fiscal policy. Fiscal policy is the use of government spending and taxation to influence the economy. By reducing government spending, Congress is attempting to lower the overall level of spending in the economy, which can have an impact on inflation and economic growth.

If Congress Decreases Government Spending, It Is Using