Asked by Laura Ramos on Jun 21, 2024

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Which of the following is not a tool of fiscal policy?

A) Money supply
B) Government purchases
C) Taxes
D) Social Security program
E) Unemployment benefits

Fiscal Policy

Government policies related to taxation and spending aimed at influencing a country's economy.

Money Supply

The sum of financial resources accessible within an economy at a given moment, encompassing cash, coins, and amounts present in both checking and savings accounts.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy the needs of the community or help in the production of further goods.

  • Understand the tools and components of fiscal policy.
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Verified Answer

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Marian MikhailJun 25, 2024
Final Answer :
A
Explanation :
Fiscal policy involves government spending and taxation decisions, not the money supply, which is a tool of monetary policy managed by the central bank.