'Fiscal Policy' (Discretionary Fiscal Policy)is Defined as Changes in Federal

Multiple Choice

'Fiscal policy' (discretionary fiscal policy) is defined as changes in federal ________ and ________ to achieve macroeconomic objectives such as price stability, healthy rates of economic growth and high employment.

A) taxes; interest rates
B) taxes; financial liquidity in the economy
C) interest rates; financial liquidity in the economy
D) taxes; purchases