Place a check next to all of the items that are examples of fiscal policy There

Question

Place a check next to all of the items that are examples of fiscal policy There is an increase in income tax rates The Federal Reserve purchases bonds on the open market. The estate tax is repealed Government increases military spending. Public money is used to build a high-speed train that connects Los Angeles and Las Vegas. The Federal Reserve increases the money supply by decreasing the reserve-ratio requirement. To help domestic firms, government sets a quota,on the number of goods that can be imported.

Explanation / Answer

Correct options:

- There is an increase in income tax rates (T)

- The estate tax is repealed (T)

- Government increases millitary spending (G)

- Public money is used to build a high speed train that connects Los Angeles and Las Vegas (G, Infrastructure spending)

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