Which of the following is considered as a fiscal policy?
A)Fixing the exchange rate.
B)Lowering interest rates.
C)Removing energy subsidies.
D)Increasing mortgage rates.

Question

Quizplus · Accepted Answer

Removing energy subsidies can be considered as a fiscal policy as it relates to government spending and revenue. Fiscal policy involves the use of government spending, taxation, and borrowing to influence the economy. Removing energy subsidies can increase revenue for the government, which can be used to fund other programs or reduce the budget deficit.

Option A (fixing the exchange rate) is a monetary policy, as it involves managing the money supply and interest rates to achieve economic goals. Lowering interest rates and increasing mortgage rates are also monetary policies, as they impact the availability and cost of credit.

Which of the Following Is Considered as a Fiscal Policy