Examples of fiscal policy do NOT include:
A) increasing the GST tax credit reimbursements.
B) reducing the money supply to raise the interest rate.
C) increasing personal income tax deductions for childcare expenses.
D) reducing federal transfer payments to provinces.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the government's actions related to taxation and spending to influence the economy. Option B is an example of monetary policy, which deals with the money supply and interest rates, not fiscal policy. The other options (A, C, and D) all involve changes in taxation or spending policies, which fall under the purview of fiscal policy.

Examples of Fiscal Policy Do NOT Include