Which of the following is an example of fiscal policy?

The Federal Reserve raises the discount rate.
Businesses begin to invest more.
The government decides to spend less.
Net exports rise.

Policy maker Smith wants to recommend a policy that will move the IS curve to the right. He should recommend:

open-market purchases by the Federal Reserve.
open-market sales by the Federal Reserve.
a decrease in government spending.
a decrease in taxes.

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