Which of the following is an example of a fiscal policy?
A) The federal government increases income tax rates on people earning more than $250 000.
B) The Bank of Canada takes action to greatly decrease the money supply.
C) The Bank of Canada increases interest rates.
D) Businesses begin to export and import more products and services.

Question

Quizplus · Accepted Answer

Fiscal policy refers to government actions related to taxation and spending. Increasing income tax rates on high earners is an example of a fiscal policy.

B, C, and D are examples of monetary policy, which involves actions taken by a central bank to control the money supply and interest rates, and actions taken by businesses in response to market conditions.

Which of the Following Is an Example of a Fiscal