Fiscal policy is used to promote price stability and full employment and economic growth by

A) the money supply

Eliminate

B) government spending

C) nominal interest rates

D) the personal income tax rate

Answer:The answer is D

Explanation:

Fiscal policy is the using of revenue and expenditure of government to regulate the economy. The fiscal policy of government is been oversee by the executive headed by the president while the minister of finance is directly in charge of administration of the policy.

It works in ensuring price stability by increasing the personal income tax, this will reduce the disposable income of the people and in turn reduce their purchasing power and make it difficult for them to buy more goods, by this the problem of too much money chasing fewer goods will be solved or inflation will be solved the price will be stable.

On the other hand, government can reduce the corporate tax, this will increase the profit of firms in the country and such profit excess will be plough back into the business to increase their production. This will inturn lead to the employment of more workers to work in the firms. Thus, the problem of unemployment will be solved.

B

Explanation:

Fiscal is related to government spending