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Which one of the following is not an instrument of Fiscal policy?
Open Market Operations
Taxation
Public borrowing
Public expenditure
Fiscal policy - Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply. Open Market Operations - The Federal Reserve uses open market operations to arrive at the target rate. Open market operations consists of the buying or selling of government securities. The Fed holds government securities, and so do individuals, banks, and other financial institutions such as brokerage companies and pension funds.
By: Amit Kumar ProfileResourcesReport error
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