How does fiscal policy influence the economy?
A
Fiscal policy uses regulation and privatisation to influence productive capacity and the wider economy.
B
Fiscal policy uses exchange rates and currency intervention to influence aggregate demand and the wider economy.
C
Fiscal policy uses interest rates and the money supply to influence aggregate demand and the wider economy.
D
Fiscal policy uses government spending and taxation to influence aggregate demand and the wider economy.
5.2.6 distinction between expansionary and contractionary fiscal policy Flashcards
27 flashcards on CIE Intl A Level Economics 5.2.6 distinction between expansionary and contractionary fiscal policy: the key terms and definitions you need to recall.