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WAEC Economics 2017 Question 40

Question 40

Public Finance

The control of aggregate demand through changes in government spending and tax rates is referred to as

  1. A.monetary policy.
  2. B.government policy.
  3. C.income policy.
  4. D.fiscal policy
Show the answer and explanation

Answer: D (fiscal policy)

Explanation

Fiscal policy uses government spending and taxation.