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Fiscal policy is the government's tool to keep the economy stable by:
increasing taxes
decreasing taxes
increasing regulation
Increasing or decreasing government spending
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Answer :

GinnyAnswer

Final answer:

Fiscal policy involves using taxation, spending, and borrowing to stabilize the economy by adjusting government spending.


Explanation:

Fiscal policy is the government's tool to keep the economy stable by increasing or decreasing government spending depending on the economic situation. It involves taxation, spending, and borrowing to influence economic outcomes. The government uses fiscal policy to achieve economic objectives such as price stability, full employment, and economic growth.


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