Fiscal policy includes all of the following EXCEPT
A)changing taxes.
B)changing government spending.
C)policies that influence aggregate demand.
D)policies that influence the rate of growth of the quantity of money in circulation.

Question

Quizplus · Accepted Answer

Fiscal policy pertains to actions taken by the government to stabilize the economy by changing its spending and tax policies. The policies that influence the rate of growth of the quantity of money in circulation typically fall under monetary policy, which is the responsibility of the central bank or monetary authority. Therefore, option D is not a part of fiscal policy.

Fiscal Policy Includes All of the Following EXCEPT