Answer :

The entire economy is affected by the fiscal policy of the government. Option C is correct.

What is the fiscal policy?

A fiscal policy is one in which the government employs taxation, public spending, and public borrowing as tools to accomplish various economic policy goals.

Governments use fiscal policy, or spending controls, to help the economy by changing the rates and distributions of taxes and spending. To accomplish some objectives, fiscal actions are regularly utilized in conjunction with monetary policy. The entire economy is effected by these policies.

Therefore, option C is correct.

Learn more about the fiscal policy, refer to:

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