ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Government Spending and taxation
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Consumer spending and productivity
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Government spending and the money supply
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Taxation and inflation
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Detailed explanation-1: -Fiscal policy is defined as the policy under which the government uses the instrument of taxation, public spending and public borrowing to achieve various objectives of economic policy. Simply put, it is the policy of government spending and taxation to achieve sustainable growth.
Detailed explanation-2: -Fiscal Policy is concerned with public revenue and public expenditure and debt. Fiscal policy helps to ensure economic stability and economic growth. During inflation, revenue is decreased.
Detailed explanation-3: -Fiscal policy refers to the use of government spending and tax policies to influence economic conditions.
Detailed explanation-4: -Fiscal policy is a means to use government spending and taxation to influence the economic situation. It is different from the monetary policy that is under the control of the central bank in that country. Together these two policies can help a country to achieve its economic goals.
Detailed explanation-5: -There are three components of the Fiscal Policy of India: Government Receipts. Government Expenditure. Public Debt.