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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Which of the following activities represent(s) the use of fiscal policy?
A. The economy is expandin...
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