Asked by Alanna Davis on May 08, 2024
Verified
Which of the following is not an example of fiscal policy?
A) Social Security spending
B) Medicare spending
C) Fed purchases of Treasury securities
D) changes in the tax rate
Fiscal Policy
Fiscal policy involves government adjustments to its spending levels and tax rates to monitor and influence a nation's economy.
Treasury Securities
Debt securities issued by the U.S. Department of the Treasury to fund the government's spending activities, including bills, notes, and bonds.
Tax Rate
The rate at which a person or business entity is charged taxes by the state.
- Identify and differentiate between fiscal and monetary policies.
Verified Answer
NA
Nur Amelia Ahmad ZakariaMay 11, 2024
Final Answer :
C
Explanation :
Fiscal policy refers to the decisions made by the government regarding taxation and spending. Social Security spending and Medicare spending are both examples of government spending. Changes in the tax rate are also an example of fiscal policy. Fed purchases of Treasury securities, on the other hand, are part of monetary policy which is the responsibility of the Federal Reserve, not the government's fiscal policy.
Learning Objectives
- Identify and differentiate between fiscal and monetary policies.