Examples of fiscal policy do NOT include:
A) government spending on infrastructure to stimulate aggregate demand.
B) reducing the interest rate by increasing the money supply.
C) an economic stimulus package.
D) a $1,500 per family tax rebate.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the government's use of its spending and taxation powers to influence macroeconomic variables such as inflation, employment, and economic growth. Option B refers to a monetary policy tool, as it involves the Federal Reserve increasing the money supply to reduce interest rates and stimulate borrowing and investment. The other options (A, C, D) are examples of fiscal policy measures.

Examples of Fiscal Policy Do NOT Include