Fiscal policy is used to promote price stability, full employment, and economic growth by
A) adjusting interest rates.
B) releasing depository institution funds.
C) increasing or decreasing the money supply.
D) increasing or decreasing tax levels and public spending.

Respuesta :

Answer: D) increasing or decreasing tax levels and public spending.

Explanation:  Fiscal policy is used to promote price stability, full employment, and economic growth by increasing or decreasing tax levels and public spending.

Price stability as well as full employment and economic growth can be aided and been promoted by Fiscal policy by  D) increasing or decreasing tax levels and public spending.

  • Fiscal policy can be regarded as estimate of taxation as well as government spending which can influence the economy.

  • It brings about the government lowering taxes as well as spending more. the policy is used in stimulating and ensuring that consumers' purchasing power is strong.

Therefore, option D is correct.

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