fiscal policy refers to\na. changes in the money supply.\nb. discretionary changes in government spending…

fiscal policy refers to\na. changes in the money supply.\nb. discretionary changes in government spending and taxes.\nc. changes in the interest rate.\nd. changes in the amount of physical capital in the economy.

fiscal policy refers to\na. changes in the money supply.\nb. discretionary changes in government spending and taxes.\nc. changes in the interest rate.\nd. changes in the amount of physical capital in the economy.

Answer

Brief Explanations:

Fiscal policy is about government - related economic actions. It involves discretionary changes in government spending and taxes to influence the economy, not money supply (monetary policy), interest rate (also monetary policy - related), or physical capital amount directly.

Answer:

B. discretionary changes in government spending and taxes.