Which is a good fiscal policy when inflation is very low and unemployment is very high? Decrease the money supply Increase government purchases of goods and services O Cut government transfer payments Decrease the budget deficit

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Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.