Policy that lowers nominal interest rate:

While cutting income taxes can increase disposable income and potentially stimulate demand, it does not directly influence nominal interest rates. Tax cuts may lead to higher spending, but the relationship with interest rates is indirect and not guaranteed, as it depends on various economic conditions.

Deficit-financed spending refers to government expenditures that exceed revenue, funded through borrowing. While it can stimulate economic activity, it may lead to higher interest rates if investors demand more return for increased risk associated with higher government debt levels, contradicting the goal of lowering nominal interest rates.

Raising the discount rate, the interest rate at which banks can borrow from the central bank, would have the opposite effect of increasing nominal interest rates. This policy restricts the money supply and makes borrowing more expensive, which is contrary to the goal of lowering interest rates.