When the government attempts to stabilize the economy by changing taxes or government expenditures, it is...

...using fiscal policy, True or False ?

Answer:
True.

Lowering of taxes is accomplished via lowering actual tax rates or giving tax breaks or credits against taxes owed.

This has proven a good means of stimulating the economy regardless of what the pundits have promoted otherwise. And the US treasury actually collected more taxes as corporations earned more from increased business activities.
True, discretionary fiscal policy. Changing the interest rate or money supply is known as monetary policy and is implemented in most countries by an autonomous central bank.
Sounds true, could be a tricko.

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