which of the following is a measure of fiscal policy
Answers
Answer:
The two main tools of fiscal policy are taxes and spending. Taxes influence the economy by determining how much money the government has to spend in certain areas and how much money individuals should spend. For example, if the government is trying to spur spending among consumers, it can decrease taxes.
Explanation:
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Concept introduction:
Austerity or fiscal policy is the use of government income gathering and investment to impact a country's economy in economics and political science.
Explanation:
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Taxes and expenditure are the two basic weapons of fiscal policy. Taxes have an impact on the economy because they determine how much money the government has to spend and how much money people should expend. For fact, if the government wants to encourage consumer spending, it might lower taxes.
Final answer:
Hence, the final answer of the question is-> Taxes and expenditure are the two primary weapons of fiscal policy. Taxes have an impact on the economy because they determine how much money the government is required to spend in specific areas and how much money people should spend. For example, if the government wants to encourage customers to spend more, it might lower taxes.
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