Which of the following is NOT a tool of fiscal policy?
A) taxes
B) transfer payments
C) interest rates
D) government purchases of goods and services

Question

Which of the following is NOT a tool of fiscal policy?  
A) taxes 
B) transfer payments 
C) interest rates 
D) government purchases of goods and services

Quizplus · Accepted Answer

Interest rates are a tool of monetary policy, not fiscal policy. Fiscal policy refers to the use of government expenditure and taxation to influence the economy. Taxes, transfer payments, and government purchases of goods and services are all tools of fiscal policy.

Which of the Following Is NOT a Tool of Fiscal