A group of students is studying for an economics quiz about economic cycles and how the government manages in an economy. In a market economy, strategies that change spending or taxes in order to influence economic conditions are known as:

Question

(1 point)
Responses

fiscal policy.
fiscal policy.

equity promotion.
equity promotion.

monetary policy.
monetary policy.

economic stimulus.
economic stimulus.

Answer 1

In a market economy, strategies that change spending or taxes in order to influence economic conditions are known as:

fiscal policy.