Governments have a number of economic targets as part of their fiscal policy. Which of the

Governments have a number of economic targets as part of their fiscal policy. Which of the following government actions relate predominantly to fiscal policy？ 1 Decreasing interest rates in order to stimulate consumer spending 2 Reducing taxation while maintaining public spending 3 Using official foreign currency reserves to buy the domestic currency 4 Borrowing money from the capital markets and spending it on public works

A.1 only

B.1 and 3

C.2 and 4 only

D.2, 3 and 4

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