Which of the following is NOT a fiscal policy action?
A)increasing government expenditures on military hardware
B)decreasing government spending on the arts
C)raising the quantity of money in circulation
D)lowering income tax rates

Question

Quizplus · Accepted Answer

Fiscal policy involves actions taken by the government to influence the economy through government spending and taxation. Increasing government expenditures (A) and lowering income tax rates (D) are both examples of expansionary fiscal policy aimed at boosting economic activity. Decreasing government spending (B) is an example of contractionary fiscal policy aimed at slowing down the economy. However, raising the quantity of money in circulation (C) is a monetary policy action controlled by the central bank, not a fiscal policy action controlled by the government.

Which of the Following Is NOT a Fiscal Policy Action