Which of the following can be categorized under fiscal policy?
A)Increase in money supply
B)Decrease in money supply
C)Increase in federal funds rate
D)Decrease in reserve requirement
E)Increase in tax rates

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending, taxation, and borrowing to influence the economy. An increase in tax rates is an example of fiscal policy because it affects government revenue and can impact the level of economic activity. Choices A-D are examples of monetary policy, which refers to the use of interest rates, money supply, and reserve requirements to influence the economy.

Which of the Following Can Be Categorized Under Fiscal Policy