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Practice ACCA ACCA BT — Business & Technology Practice Exam 1Question 31

Easy1 markMultiple Choice

Syllabus A: The business organisation and its external environmentSection ASyllabus AMacroeconomics

ACCA · Question 31 · Syllabus A: The business organisation and its external environment

Fiscal policy refers to the government's use of interest rates and the money supply to influence the economy.

Answer options:

True

False

Only applies to developing nations

Only applies to inflation

How to approach this question

Recall the difference between Fiscal (tax/spend) and Monetary (interest rates/money supply) policy.

Full Answer

B.False✓ Correct

Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The manipulation of interest rates and money supply is known as Monetary policy.

Common mistakes

Mixing up fiscal and monetary policy.

Question 30 All questions Question 32

Practice the full ACCA BT — Business & Technology Practice Exam 1

52 questions · hints · full answers · grading

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