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Which of the following is true? Fiscal policy involves expanding and contracting the money supply Fiscal...

Which of the following is true?

Fiscal policy involves expanding and contracting the money supply

Fiscal policy involves raising and lower interest rates

Monetary policy involves the central bank

Monetary policy involves the tax code
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Answer #1

Answer: Correct option is "monetary policy involves the central bank".

1st option) This option is incorrect. Monetary policy involves expanding and contracting the money supply in an economy.

2nd option) This option is incorrect. Monetary policy involves increasing and decreasing interest rates.

3rd option) This option is correct. Monetary policy involves the central bank and fiscal policy involves the government of a country.

4th option) This option is incorrect. Fiscal policy involves the tax code.

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