Respuesta :
Fiscal policy is the series of decisions that a government makes about taxation and government spending.
The use of government spending and tax policies to influence economic conditions, particularly macroeconomic conditions, is referred to as fiscal policy. These include total goods and services demand, employment, inflation, and economic growth. During a recession, the government may reduce tax rates or increase spending in order to stimulate demand and economic activity. To combat inflation, it may raise interest rates or cut spending to cool the economy.
When it comes to influencing the economy, policymakers have two main tools at their disposal: monetary policy and fiscal policy. Central banks influence the money supply indirectly by adjusting interest rates, bank reserve requirements, and the purchase and sale of government securities and foreign exchange. Governments have an impact on the economy by altering the level and composition of taxes, the extent and composition of spending, and the degree and form of borrowing.
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