44.7k views
3 votes
Taxing and spending are tools of_____.

A. Fiscal policy

B. Monetary policy

1 Answer

1 vote

Answer:

A. Fiscal policy.

Step-by-step explanation:

Taxes are a fiscal policy tool because changes in taxes affect the average consumer's income, and changes in consumption lead to changes in real GDP.

User Ross Drew
by
5.6k points