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Which action would be a change in the government's fiscal policy

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βˆ™ 9y ago
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Anonymous

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βˆ™ 4y ago

an increase in taxes

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Q: Which action would be a change in the government's fiscal policy?
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Related questions

What is the difference between automatic and discretionary fiscal policy?

Discretionary fiscal policy requires deliberate government action. Automatic fiscal policy occurs automatically without (additional) congressional action.


Governmental fiscal policy?

Governments do not influence fiscal policies, only monetary policy - Expansionary fiscal policy, where money is injected into the economy to create activity. - Contractionary fiscal policy, where money is withheld from the economy in the hope to control or even reduce inflation.


The leaders of a small country decide that they need to enact a contractionary fiscal policy Which action is consistent with this fiscal policy?

A reduction in government spending is consistent with a contractionary fiscal policy.


When the governments raise or lowers taxes it is one form of?

monetary policy ITS ACTUALLY FISCAL POLICY . CLOWN -_-


What does Contractionary fiscal policy includes?

Contractionary fiscal policy occurs when government spending is lower than tax. Governments can use a budget surplus to do two things. One main instrument of fiscal policy are changes in the levels and composition of tax.


What is the way governments use taxes and spending to stabilize the economy called?

Fiscal Policy


What are the two tools of fiscal policy that governments can use to stabilize an economy?

government spending and taxation


What is the impact of fiscal policy?

Fiscal policy is used by governments to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of price stability, full employment and economic growth.


What is governments action in response to an issue?

public policy


Which action is most likely to result in a decrease in money supply?

A contractionary monetary policy or a contractionary fiscal policy.


What refers to the governments pursuit of full employment and price stability through variations in taxes and government spending?

Fiscal policy


Fiscal policy and monetary policy?

fiscal is the governments budget in terms of spending and expenditure. so there can either be a budget deficit or a budget surplus. when there is a budget surplus, government use a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. in most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy