Question 43
Public FinanceFiscal policy involves changes in
- A.open market operations
- B.revenue and expenditure of government
- C.money supply to the economy
- D.imports and exports.
Show the answer and explanation
Answer: B (revenue and expenditure of government)
Explanation
Fiscal policy is the use of government taxes (revenue) and spending to influence the economy; open market operations and money supply are monetary policy.