Examples of fiscal policy do not include: A.reducing the interest rate by increasing the money supply....
Examples of fiscal policy do not include:
A.reducing the interest rate by increasing the money supply.
B. Government spending on infrastructure to stimulate aggregate demand.
C. A $1,500 per family tax rebate
D. An economic stimulus package
Homework Answers
ANswer
Option A
A.reducing the interest rate by increasing the money supply
Fiscal policy is used to stabilize the economy by the government and it uses taxes and government spending to stimulate or contract the economy.
so, the following is included in it
B. Government spending on infrastructure to stimulate aggregate demand.
C. A $1,500 per family tax rebate
D. An economic stimulus package
===========
Monetary policy uses money supply and interest rate to stabilize the economy.
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