Which of the following is NOT a tool of fiscal policy?
A) money supply
B) government purchases
C) taxes
D) unemployment benefits

Question

Which of the following is NOT a tool of fiscal policy?  
A) money supply 
B) government purchases 
C) taxes 
D) unemployment benefits

Quizplus · Accepted Answer

Fiscal policy involves government spending and taxation decisions, which are reflected in choices B, C, and D (government purchases, taxes, and unemployment benefits). Choice A, money supply, is a tool of monetary policy, not fiscal policy. Monetary policy is managed by a country's central bank and involves regulating the money supply and interest rates.

Which of the Following Is NOT a Tool of Fiscal