Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based onMultiple Choicethe government's taxing and spending decisions.the money supply.the importance of maintaining a 12-month (fiscal year) economic cycle.the projections of the Federal Reserve Board.the idea that a balanced budget is the key to a healthy economy.

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.

FISCAL POLICY

Fiscal policy describes a government's actions related to:

Fiscal policy is government action that involves:A.environmental regulation.B.taxation and spending.C.foreign relations.D.criminal prosecution.

Fiscal policy is NOT often used as a stabilisation tool. However, it does have important roles in the economy. Three of these roles are:Group of answer choicesmanaging collection of taxes, public health and antiterrorism policymanaging public assets, defence projects, and public safetymanaging government monetary policy, inflation and interest ratesmanaging income distribution, demographic change, and public debtmanaging full employmen, price stability and exchange rates.