Praxis 5004 Practice Test Practice Question
Which of the following statements is the best explanation of fiscal policy?
Correct Answer: C
Rationale: Fiscal policy involves the government's use of spending and taxation to influence economic activity. Option C accurately describes this process, highlighting the role of the legislative branch in adjusting spending levels and tax rates to manage economic conditions.
Option A refers to monetary policy, which is focused on managing the money supply and interest rates and is executed by the central bank, not the government’s fiscal measures.
Option B discusses the judicial branch's role in regulating corporate behavior, which is unrelated to fiscal policy.
Option D pertains to antitrust laws and consumer protection, again not aligned with the concept of fiscal policy.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now