What Are the Two Tools of Fiscal Policy That Governments

question 56

Multiple Choice

What are the two tools of fiscal policy that governments can use to stabilize an economy?

• A) government spending and technology improvements
• B) government spending and taxation
• C) taxation and controlling imports
• D) taxation and controlling exports

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Definitions:

Bat House

A man-made structure designed to provide roosting sites for bats, facilitating natural pest control and biodiversity.

Policy Solution

A strategy or plan of action designed to address a particular public issue or problem.

Free Market

An economic system where prices for goods and services are determined by the open market and consumers, with minimal governmental intervention and regulation.

Immunizations

are medical procedures that protect individuals from specific diseases by inducing or enhancing the immune response to a particular pathogen.