Question

Page 534 16.1. What is fiscal policy? Which of the following government actions would be considered fiscal policy decisions? Correct Answer(s) stricter enforcement of immigration law Press Space to open cutting taxes to encourage commercial activity Press Space to open canceling a government-funded project because of a lessened need for job creation Press Space to open passage of new national air quality standards Press Space to open the central bank acting to increase the money supply

Answer 1

Fiscal policy is when the government uses taxes or its spending to regulate the economy.

Fiscal policy can be expansionary or contractionary

expansionary fiscal policy is when the money supply is increased through increased spending and cutting of taxes

contractionary fiscal policy is when money supply is reduced

cutting taxes to encourage commercial activity

Step-by-step explanation: