ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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it can operate across the whole economy equally
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it can be implemented immediately
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it can be targetted at specific needs in the economy
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None of the above
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Detailed explanation-1: -A healthy fiscal policy is important to control inflation, increase employment and maintain the value of money. It has a very important role in managing the economy. Taxation-regulating which the government increases or decreases the disposable cash in the hands of the public.
Detailed explanation-2: -The usual goals of both fiscal and monetary policy are to achieve or maintain full employment, to achieve or maintain a high rate of economic growth, and to stabilize prices and wages.
Detailed explanation-3: -The three main components of the Fiscal Policy of any country are – government receipts (revenue and capital), government expenditure (revenue and capital) and public debt.
Detailed explanation-4: -Some of the key objectives of fiscal policy are economic stability, price stability, full employment, optimum allocation of resources, accelerating the rate of economic development, encouraging investment, and capital formation and growth.
Detailed explanation-5: -The objective of fiscal policy is to maintain the condition of full employment, economic stability and to stabilise the rate of growth.