Which of the following is NOT a tool of fiscal policy?
A)changing tax rates
B)government transfers
C)government purchases of goods and services
D)changes in the money supply

Question

Quizplus · Accepted Answer

Changes in the money supply are a tool of monetary policy, not fiscal policy. Fiscal policy refers to actions that the government takes to affect the economy through changes in taxation, government spending, and transfers. Monetary policy, on the other hand, refers to actions taken by a central bank to control the money supply and interest rates.

Which of the Following Is NOT a Tool of Fiscal