Which of the following are correct statements regarding fiscal policy?
(A) Fiscal policy involves government spending and tax policies to influence economic activity.
(B) Fiscal policy is used to manage inflation and unemployment.
(C) A balanced budget leads to economic stability in all cases.
(D) An expansionary fiscal policy typically involves an increase in government spending and/or tax cuts.
(E) Fiscal policy cannot influence the distribution of income.
Choose the correct answer from the options given below:
1
(A), (C), and (E) only
2
(B), (D), and (E) only
3
(A), (B), and (C) only
4
(A), (B), and (D) only