ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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interest rates charged to businesses seeking economic growth
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credit availability to trigger a peak in the business cycle
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the money supply in order to achieve national economics goals
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government expenditures and/or taxes in order to achieve national economic goals
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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 changing the governments budget to influence aggregate demand. i.e. changing taxes and spending. Discretionary fiscal policy means the government make changes to tax rates and or levels of government spending.
Detailed explanation-3: -Discretionary fiscal policy refers to: any change in government spending or taxes that destabilizes the economy. the authority that the president has to change personal income tax rates. intentional changes in taxes and government expenditures made by Congress to stabilize the economy.
Detailed explanation-4: -Contractionary fiscal policy, on the other hand, is a measure to increase tax rates and decrease government spending. It occurs when government deficit spending is lower than usual.
Detailed explanation-5: -Discretionary fiscal policy refers to deliberate policy actions on the part of the government to change the levels of expenditure and taxes to influence the level of national output, employment and prices.