Question

Which of the following is not a program managed as part of fiscal policy?

Answer 1

Mortgage rates

Fiscal policy refers to changes in government spending and taxation designed to affect aggregate expenditure. As Social Security, unemployment benefits, and corporate taxes all impact overall spending, they can be utilized as part of fiscal policy. Monetary policy refers to actions by the central bank to manipulate the money supply and thereby control interest rates. Mortgage rates is that’s affected by monetary policy, not fiscal policy.