Fiscal policy is the government's approach to monitoring the value of money. investing its money. taxing and borrowing. taxing and spending.

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Angus

15 December, 15:23

Fiscal policy is the government's approach to monitoring the value of money. investing its money. taxing and borrowing. taxing and spending.

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Answers (2)

Know the Answer?

Emanuel Farmer · Answer 1

the answer is D. taxing and spending.

Deangelo Bright · Answer 2

Fiscal policy is the government's approach to taxing and spending

Explanation:

Fiscal policy is the government's approach to taxing and spending in order to influence and balance the economy for the mid or long term so that the inflation and wages levels remain stable, the rate employment is high, and there is economic growth in general.

There are mainly two types of fiscal policies, which governments uses depending on the state of a nation's economy. For example, when a nation has a high unemployment rate and there is not enough demand, the government may stimulate economic growth by cutting taxes and increasing government spending, this is called Expansionary Fiscal Policy. On the other hand, when a nation has inflation, the government may aim to counteract this inflation by raising taxes and decreasing government expanding, that is to say, it can use a Contractionary Fiscal Policy.

Nevertheless, both policies have downsides. If an Expansionary Fiscal Policy is not used properly, it could lead to inflation, and an inadequate Contractionary Fiscal Policy can cause unemployment rates to increase.