Asked by
Brayden Salomon
on Oct 08, 2024Verified
A government using fiscal policy in an attempt to stimulate the economy would do which of the following?
A) Raise taxes.
B) Raise interest rates.
C) Lower interest rates.
D) Raise government spending.
Fiscal Policy
Government strategies concerning spending and taxation to influence the economy, aiming to control inflation, unemployment, and encourage economic growth.
Government Spending
The total of all public expenditures made by government agencies, including investments and consumption.
Interest Rates
The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to lenders over a specified period.
- Comprehend the use of fiscal policy to stimulate economic activities.
Verified Answer
PE
Learning Objectives
- Comprehend the use of fiscal policy to stimulate economic activities.