Between 2001 and 2003 the Federal Reserve cut interest rates 12 times. This is an example of

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The Federal Reserve cutting interest rates is an example of expansionary monetary policy, which is used to stimulate economic activity and increase aggregate demand. It is not a fiscal policy, as fiscal policy refers to government spending and taxation measures. Additionally, it was a discretionary action by the Federal Reserve, rather than a nondiscretionary action mandated by law. Finally, lowering interest rates is an example of expansionary, rather than contractionary, policy as it is intended to boost economic growth rather than slow it down.

Between 2001 and 2003 the Federal Reserve Cut Interest Rates