Fiscal Policy Overview

Implementing trade tariffs to protect domestic industries.

Regulating bank interest rates to control inflation.

Controlling the money supply through the central bank.

Adjusting government spending and taxes to influence the economy. (correct)

By limiting the amount of money available for loans.

By modifying aggregate demand and employment levels. (correct)

By manipulating foreign exchange rates.

Through government intervention in stock markets.

Increasing the stock market value. (correct)

Reducing unemployment.

Stimulating economic growth.

Controlling inflation rates.

<p>Increases aggregate demand and stimulates economic growth.</p> Signup and view all the answers

<p>Increasing social welfare payments to boost consumer spending.</p> Signup and view all the answers