Governments have a number of economic targets as part of their fiscal 2 points 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. 1 only 1 and 3 only 2 and 4 only 2,3 and 4 only Capital investment appraisal refers to: 2 points Making sure that we have enough money to buy assets Making sure that assets pay for themselves as soon as possible Making sure that we have enough assets to operate Evaluating the costs and benefits of proposed investments in operating assets