Fiscal Policy Is a Mechanism the Government Employs to Influence

Multiple Choice

Fiscal policy is a mechanism the government employs to influence the economy.Fiscal policy is based on

A) the idea that a balanced budget is the key to a healthy economy.
B) the money supply.
C) the government's taxing and spending decisions.
D) the importance of maintaining a 12-month (fiscal year) economic cycle.
E) the projections of the Federal Reserve Board.