Canadian Securities Course (CSC) Practice Exam · Question
A finance minister announces new government spending programs and tax cuts designed to stimulate economic growth. This action represents an application of which economic policy?
Fiscal policy involves the government's use of spending and taxation policies to influence economic conditions, especially macroeconomic conditions, including a
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Question: A finance minister announces new government spending programs and tax cuts designed to stimulate economic growth. This action represents an application of which economic policy?
Answer options: ✅ Fiscal policy
- Monetary policy
- Trade policy
- Regulatory policy
Correct answer: Fiscal policy
Explanation: Fiscal policy involves the government's use of spending and taxation policies to influence economic conditions, especially macroeconomic conditions, including aggregate demand for goods and services, employment, inflation, and economic growth.
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