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