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The control of aggregate demand through changes in government spending and tax rates is referred...

Economics
WAEC 2017

The control of aggregate demand through changes in government spending and tax rates is referred to as?

  • A. monetary policy
  • B. government policy
  • C. income policy
  • D. fiscal policy
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Correct Answer: Option D
Explanation

In economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy.

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