Which of the following activities represent(s) the use of fiscal policy?
A. The economy is expanding and the government increases the income tax rate.
B. The economy is doing poorly and government cuts back on spending in an attempt to balance the budget.
C. The government restricts the purchase of cigarettes.
D. The economy is expanding and the Federal Reserve decides to take steps to decrease the money supply.
E. The economy is expanding, but because of concerns about pollution, the government passes tougher antipollution regulations.
F. The economy is in a recession and a privately funded advertising program encourages consumers to purchase more goods and services.

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Kikadudubuddy2035 Kikadudubuddy2035

12-03-2021
Business

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Which of the following activities represent(s) the use of fiscal policy?
A. The economy is expanding and the government increases the income tax rate.
B. The economy is doing poorly and government cuts back on spending in an attempt to balance the budget.
C. The government restricts the purchase of cigarettes.
D. The economy is expanding and the Federal Reserve decides to take steps to decrease the money supply.
E. The economy is expanding, but because of concerns about pollution, the government passes tougher antipollution regulations.
F. The economy is in a recession and a privately funded advertising program encourages consumers to purchase more goods and services.

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topeadeniran2 topeadeniran2 · Answer 1 · 2021-03-12T19:53:37+01:00

Answer: . The economy is expanding and the government increases the income tax rate.

B. The economy is doing poorly and government cuts back on spending in an attempt to balance the budget.

Explanation:

Fiscal policy simply means when the government uses taxation and expenditure to control economic activities in a country. The tools used in fiscla policy include taxes, government expenditure and also transfer payments.

Based ok the definition above, activities that represent the use of fiscal policy include

• A. The economy is expanding and the government increases the income tax rate.

• B. The economy is doing poorly and government cuts back on spending in an attempt to balance the budget.

nikitavidya0 nikitavidya0 · Answer 2 · 2022-04-07T14:06:03+02:00

The activities that represent the use of fiscal policy are;

The economy is expanding and the government increases the income tax rate.

The economy is doing poorly and government cuts back on spending in an attempt to balance the budget.

What is fiscal policy?

Fiscal policy is said as the policy of the government that deals with tax and spending in order to bring economic stability.

Therefore, when the government would raise its tax, the aggregate demand of people would fall with decreased disposable income.

Similarly, the increased spending would lead to higher employment and income which would raise the aggregate demand in the economy.

Learn more about fiscal policy here:

https://brainly.com/question/1166038