All of the following are tools of fiscal policy except one.Which is the exception?
A)taxes
B)transfer payments
C)interest rates
D)government purchases of goods
E)government purchases of services

Question

Quizplus · Accepted Answer

Interest rates are a tool of monetary policy, not fiscal policy. Fiscal policy focuses on the government's use of taxes, transfer payments, and purchases of goods and services to influence the overall economy. Monetary policy, on the other hand, involves the manipulation of interest rates and the money supply by the central bank.

All of the Following Are Tools of Fiscal Policy Except