Asked by Zhang HongKai on Jun 21, 2024
Verified
Which of the following are components of fiscal policy?
A) Transfer payments only
B) Money supply and government purchases
C) Government purchases only
D) Government purchases,transfer payments,and taxes
E) Taxes and money supply
Fiscal Policy
Involves government policies on taxation and spending that aim to influence a country's economic conditions, such as controlling inflation, unemployment, and promoting economic growth.
Transfer Payments
Payments made by the government to individuals through various social benefit programs, without the government receiving any goods or services in return.
Government Purchases
Expenditures by the government for goods and services that directly satisfy public consumption or are invested in public infrastructure.
- Acquire knowledge on the tools and constituents of fiscal policy.
Verified Answer
AS
Amirul ShahiranJun 26, 2024
Final Answer :
D
Explanation :
Fiscal policy involves the use of government spending (government purchases), transfer payments (such as welfare programs or social security benefits), and taxes to influence the economy. Money supply is a component of monetary policy, not fiscal policy.
Learning Objectives
- Acquire knowledge on the tools and constituents of fiscal policy.