All of the following are part of fiscal policy EXCEPT
A) choosing the size of the government deficit.
B) controlling the money supply.
C) setting government spending.
D) setting tax rates.

Question

Quizplus · Accepted Answer

Controlling the money supply is actually part of monetary policy, which is implemented by a central bank (such as the Federal Reserve in the US) and involves manipulating interest rates and other financial instruments to influence economic activity. Fiscal policy, on the other hand, involves decisions made by the government regarding taxation and spending policies to achieve certain economic objectives. The other options (A, C, and D) are all examples of fiscal policy.

All of the Following Are Part of Fiscal Policy EXCEPT