Which of the following is not an instrument of fiscal policy?
A)Transfer payments
B)Government bonds
C)Income taxes
D)Sales taxes
E)Government purchases

Question

Quizplus · Accepted Answer

Government bonds are a tool of monetary policy, not fiscal policy. Fiscal policy involves government spending, taxation, and transfer payments. Monetary policy involves controlling the money supply and interest rates, which can affect consumer and business spending. Government bonds are bought and sold by the central bank to influence interest rates, which in turn can influence spending and economic growth.

Which of the Following Is Not an Instrument of Fiscal