Fiscal policy refers to
A) efforts to balance a government's budget.
B) changes in the money supply to achieve particular economic goals.
C) changes in government expenditures and taxation to achieve particular economic goals.
D) the change in private expenditures that occurs as a consequence of changes in government spending.
C
You might also like to view...
Most money in the US is created when
a. commercial banks make more loans b. commercial banks increase their liabilities c. the US Mint prints more US currency d. Investment banks increase their number of IPOs
Historically, some governments have relied on the revenue generated from printing currency to finance government spending. Give two examples of government's relying on paper currency to finance wartime expenditures. What do you expect happened to inflation rates during these historical episodes?
What will be an ideal response?