Question

The fiscal policy of government can have a _________ impact on the economy.

Answer 1

The fiscal policy of government can have a monetary impact on the economy.

When talking about the fiscal policy of a government, that is meaning the government can adjust spending levels and tax rates that change the nation's economy. When they do this, they are able to mess with and see what changes in the economy based on the changes they make themselves. 

Answer 2

The fiscal policy of the Government can have a Monetary impact on the economy.

With the fiscal policy, the money supply within an economy is controlled.

Economy is influenced by the fiscal policy of the government in which the government uses the revenues collected mainly from tax to meet its expenditures or expenses of the country.

So the inflows and outflows of the economy are there in a fiscal policy.