Which of the Following Is True of Fiscal Policy

question 64

Multiple Choice

Which of the following is true of fiscal policy?

• A) It is popular with conservatives.
• B) It is an approach to stabilize the economy through control of the money supply.
• C) It is controlled by the Federal Reserve Bank.
• D) It is an approach to stabilizing the economy through government spending and taxing.
• E) It requires that, during economic slowdowns, the government tighten its belt on spending.

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