Question

1. the government of north carolina has decided to build a new bridge with taxpayer dollars. this is an example of what type of government and economic policy?

a. monetary policy
b. ways and means policy
c. fiscal policy

Explanation:

To determine the correct policy, we analyze each option:

• Option A (Monetary Policy): Involves central bank actions (e.g., interest rates, money supply) to regulate the economy. Building a bridge with taxpayer dollars is not a central bank action, so A is incorrect.
• Option B (Ways and Means Policy): Primarily refers to tax - related legislative procedures in the U.S. Congress for revenue - raising. It does not pertain to government spending on infrastructure like bridge construction, so B is incorrect.
• Option C (Fiscal Policy): Encompasses government spending and taxation to influence the economy. The North Carolina government using taxpayer dollars (tax revenue) to build a bridge is an example of government spending, which falls under fiscal policy. So C is correct.

Answer:

C. Fiscal Policy