Changes in which of the following is included as part of fiscal policy?
A) tax rates
B) the level of interest rates
C) monetary policy
D) the quantity of money

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending and taxation. Changes in tax rates are a key component of fiscal policy as they directly impact the amount of disposable income consumers have to spend or save, potentially affecting overall economic activity. Choices B, C, and D are more closely associated with monetary policy, which is the responsibility of central banks, rather than fiscal policy.

Changes in Which of the Following Is Included as Part