Question

Which of the following is true about government fiscal policy?

Group of answer choices

A. we could have a balanced budget
B. we could have a deficit of spending
C. this is the total revenue and total expenses by the government
D. we could have a surplus of revenue
E. all of the above are correct

Answer 1

All of the options A, B, C, and D are correct regarding government fiscal policy.

Step-by-step explanation:

Fiscal policy is the set of policies that relate to federal government spending, taxation, and borrowing. When a government spends more than it collects in taxes, it is said to have a budget deficit. When a government collects more in taxes than it spends, it is said to have a budget surplus. If government spending and taxes are equal, it is said to have a balanced budget. Therefore, all of the options A, B, C, and D are correct regarding government fiscal policy.