Which type of government action is part of fiscal policy?A.Enforcing environmental regulations on businessesB.Negotiating treaties with other countriesC.Passing new laws about immigrationD.Spending government money on school
Question
Which type of government action is part of fiscal policy?A.Enforcing environmental regulations on businessesB.Negotiating treaties with other countriesC.Passing new laws about immigrationD.Spending government money on school
Solution
The type of government action that is part of fiscal policy is D. Spending government money on school.
Fiscal policy refers to the use of government revenue collection (taxes) and expenditure (spending) to influence a country's economy. The two main instruments of fiscal policy are changes in the level and composition of taxation and government spending in various sectors.
So, when the government spends money on schools, it is an example of fiscal policy because it involves government expenditure to influence the economy. This spending can stimulate economic activity by providing jobs, increasing demand for goods and services, and promoting education, which can lead to a more skilled workforce.
Similar Questions
Fiscal policy is government action that involves:A.environmental regulation.B.taxation and spending.C.foreign relations.D.criminal prosecution.
Fiscal policy describes a government's actions related to:
Which economic activity is part of a government's fiscal policy?A.Raising tax ratesB.Printing more moneyC.Calculating inflationD.Regulating corporations
Fiscal policy influences economic activity through the government changing:Question 3Select one:a.Government expenditures and taxesb.Money supply and interest ratesc.Mail in voting lawsd.Student loan policiese.International trade tariffs
Fiscal policy helps the government manage the economy by:A.setting the level of unemployment for the year.B.spending tax money during difficult economic times.C.setting environmental regulations for businesses.D.deciding on the proper money supply in the country.
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