AP Macroeconomics Question 147: Answer and Explanation

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Question: 147

1. Fiscal policy refers to

  • A. increases in taxes to fight recessions.
  • B. decreases in taxes to fight inflations.
  • C. changes in government spending and taxes to fight recessions or inflations.
  • D. federal deficits.
  • E. federal surpluses.

Correct Answer: C

Explanation:

(C)