What are included in expansionary fiscal policy? included, policy, reason, target, wrong

Foufou

I know govt purchases and tax cuts are included. But for some reason I thought, Funds target rate and FOMC operations are also included. Am I wrong?

Please help!

JRossSter

Fiscal Policy has to do with the Governments Budget. Which means government revenues and expenditures. Following this rule, the fiscal policy instruments are

1. Government Spending
2. Taxation

On the other hand, anything to do with the money market or the monetary sector is a monetary policy instrument. Like,

1. Open Market Operation (most widely used policy)
2. Discount Rate
3. Required Reserve Ratio

All these three are usually aimed at changing the Federal Funds Rate to influence the economy. Hope this helps.