Question

1. Fiscal policy refers to A. the behavior of the nation's central bank, the Federal Reserve, regarding the nation's money supply. B. the techniques used by a business firm to reduce its tax liability. C. the government's ability to regulate a firm's behavior in the financial markets. D. the spending and taxing policies used by the government to influence the economy.

Answer 1

Answer: D. The spending and taxing policies used by the government to influence the economy

Explanation:

Fiscal policy is simply the application of government spending/expenditures and revenue/taxing policies to influence the economy of a nation.