select the correct answer. which action is an example of the government pursuing a fiscal policy? a. the…

select the correct answer. which action is an example of the government pursuing a fiscal policy? a. the central bank increases the money supply. b. the federal reserve decreases the money supply. c. congress increases income tax rates. d. the federal reserve engages in open - market operations.

select the correct answer. which action is an example of the government pursuing a fiscal policy? a. the central bank increases the money supply. b. the federal reserve decreases the money supply. c. congress increases income tax rates. d. the federal reserve engages in open - market operations.

Answer

Brief Explanations:

Fiscal policy involves government spending and taxation. Congress, a part of the government, increasing income - tax rates is a fiscal policy action. Options A, B, and D involve actions by the central bank (Federal Reserve) which are monetary policy actions related to controlling the money supply.

Answer:

C. Congress increases income tax rates