Which of the following is an example of fiscal policy?
A) The Federal Reserve cuts interest rates sharply in 2007.
B) The use of wage and price controls to curb inflation.
C) The Deficit Reduction Act of 1984.
D) Family Leave Act of 1993.

Question

Quizplus · Accepted Answer

The Deficit Reduction Act of 1984 is an example of fiscal policy because it involved changes to government spending and taxation to reduce the budget deficit. The other options listed are examples of monetary policy (A), price controls (B), and social policy (D).

Which of the Following Is an Example of Fiscal Policy