13
RCMultiple Choice

Cumulative Exam — Cumulative exam

Question 13 • FL-2106010-M/J Civics B

How can the federal government influence the economy?

Answer
A
change government spending levels
B
change tax levels
C
do both A and B
D
do neither A nor B

Explanation

The federal government can influence the economy through fiscal policy by changing how much it spends and how much it collects in taxes. For example, increased government spending or lower taxes can boost demand, while reduced spending or higher taxes can slow it. Therefore, “do both A and B” is correct.

AI-written and checked against the verified answer.

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