A fiscal policy instrument that can influence the demand pattern in an economy is
a
government spending
b
interest rate
c
income tax
d
tariff
Explanation
Correct Option
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NOTABENE2021
4 years ago
Sorry option C is the best option.
Explanation: Taxes on individuals, such as income tax, affects their personal income and how much they can spend, injecting more money back into the economy.
NOTABENE2021
4 years ago
Option D
Explanation: In economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country's economy.
