Which of the following are components of fiscal policy?

A) Transfer payments only
B) Money supply and government purchases
C) Government purchases only
D) Government purchases,transfer payments,and taxes
E) Taxes and money supply

Fiscal Policy

Involves government policies on taxation and spending that aim to influence a country's economic conditions, such as controlling inflation, unemployment, and promoting economic growth.

Transfer Payments

Payments made by the government to individuals through various social benefit programs, without the government receiving any goods or services in return.

Government Purchases

Expenditures by the government for goods and services that directly satisfy public consumption or are invested in public infrastructure.