Question

The government’s power to tax and spend to influence the economy is called...

A. monetary policy.
B. fiscal policy.
C. Reaganomics.
D. demand-side economics.

Answer 1

 the governments power to tax and spend to influence the economy is called B. Fiscal Policy

Answer 2

B. Fiscal policy.

Fiscal policy is the government's power to use and adjust tax rates and spending levels to influence a nation's economy, aiming to create healthy economic growth.

Some indicators of economic growth include high employment rates, stabilization of prices and wages, high productivity levels and maintenance of the value of money.