Fiscal policy is defined as changes in federal ______ and ______ to achieve macroeconomic objectives such as price stability, high rates of economic growth, and high employment.

a. taxes; interest rates
b. taxes; the money supply
c. interest rates; money supply
d. taxes; expenditures

d. taxes; expenditures

Economics

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Keynesian models involve considerable efforts to explain the determinants of

A) the money supply. B) aggregate supply. C) liquidity preference. D) the demand deposit multiplier.

Economics

In Country Z, the government simultaneously decreases its expenditures by $20 billion and decreases taxes by $20 billion. If the MPS is equal to 0.2, the government's action ________ real GDP by ________

A) decreases; $100 billion B) decreases; $20 billion C) decreases; $80 billion D) has no effect on; $0

Economics