22
QuizMultiple Choice

Making Spending Decisions — Cumulative exam

Question 22 • ***CPS Online Personal Finance fall – 3-2027

Which best describes one of the primary aims of government fiscal policy?

Answer
A
to restrict price changes
B
to put more money into citizens’ hands
C
to generate new investment opportunities
D
to control real interest rates

Explanation

Fiscal policy uses government spending and taxes to influence the economy. For example, tax cuts or increased benefit payments can put more money into citizens’ hands and encourage spending. Generating investment opportunities may result from fiscal policy, but it is not the best description among these choices.

AI-written and checked against the verified answer.

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