When the government deliberately alters its level of spending and/or taxes in order to achieve specific national economic goals, it is exercising A. monetary policy. B. discretionary fiscal policy. C. automatic government budgetary policy. D. a laissez-faire policy.

‘Fiscal policy’ refers to the use of ‘government revenue collection’ & expenditure to influence…

Answered: When the government deliberately alters…

When the government deliberately alters its level of spending and/or taxes in order to achieve specific national economic goals, it is exercising

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter16: Government Spends, Collects, And Owes

Section: Chapter Questions

Problem 3AA

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Question

When the government deliberately alters its level of spending and/or taxes in order to achieve specific national economic goals, it is exercising

A. monetary policy.
B. discretionary fiscal policy.
C. automatic government budgetary policy.
D. a laissez-faire policy.

Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

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