Question

Which best describes one of the primary aims of government fiscal policy?

to restrict price changes
to put more money into citizens’ hands
to generate new investment opportunities
to control real interest rates

Answer 1

to put more money into citizens’ hands

Explanation: Fiscal policy (taxing and spending) is used to influence aggregate demand — for example, cutting taxes or increasing transfers puts more money in households' hands to boost consumption and reduce unemployment. Controlling interest rates is primarily a monetary policy tool.