FISCAL POLICY

Fiscal policy describes a government's actions related to:

Limitations of Fiscal Policy

Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based onMultiple Choicethe government's taxing and spending decisions.the money supply.the importance of maintaining a 12-month (fiscal year) economic cycle.the projections of the Federal Reserve Board.the idea that a balanced budget is the key to a healthy economy.

fiscal policy is used in response to recession.

Fiscal policy is government action that involves:A.environmental regulation.B.taxation and spending.C.foreign relations.D.criminal prosecution.