- CFA Exams
- CFA Exam: Level I 2021
- Study Session 5. Economics (2)
- Reading 16. Monetary and Fiscal Policy
- Subject 7. Fiscal Policy: Roles, Objectives, and Tools
CFA Practice Question
Fiscal policy influences the levels of income and employment by changing ______.
B. government regulations
C. taxes, transfers, and expenditures
A. the money supply, credit availability, and interest rates
B. government regulations
C. taxes, transfers, and expenditures
Correct Answer: C
Fiscal policy includes any policy that changes government outlays or tax receipts.
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