Question

The diagram shows an aspect of fiscal policy.


What aspect of fiscal policy does this diagram show?


the way in which a government creates a budget

a budget that is severely unbalanced

government spending to strengthen the economy

ways in which governments spend money

Answer 1

Answer

C. The government spending to strengthen the economy

Explanation

The fiscal policy is applied by the government to influence the economy through adjusting revenue and spending levels. The Fiscal policy is applied with the monetary policy to give a direction of the economy and reach the set economic goals. In this case, taxation and money transfers has been applied.

Answer 2

The aspect of fiscal policy does this diagram show is the government spending to strengthen the economy.

What is Fiscal policy?

The fiscal policy is known to be a tool that is use by government in the act of revenue collection and expenditure so that they can  influence the country's economy.

The direct and indirect effects of fiscal policy is one that affects the personal spending, capital expenditure and other factors that are linked to monetary policy.

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