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How can fiscal policy influence the economy?
A
Fiscal policy uses interest rates and the money supply to influence demand and inflation.
B
Fiscal policy uses government spending and taxation to influence demand and the public finances.
C
Fiscal policy raises productivity and the economy’s productive capacity.
D
Fiscal policy influences the currency’s value to affect trade and competitiveness.
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4.5.4 Macroeconomic policies in a global context Flashcards
30 flashcards on Edexcel A A Level Economics 4.5.4 Macroeconomic policies in a global context: the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3.