ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Tools of Fiscal Policy
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OMO and DR
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G and RR
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K and T
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G and T
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Explanation:
Detailed explanation-1: -The government possesses two major fiscal tools for influencing the economy. These tools can be divided into spending tools and revenue tools. Spending tools refer to the overall government spending. On the other hand, revenue tools refer to taxes collected by the government.
Detailed explanation-2: -There are three types of fiscal policy. They are neutral policy, expansionary policy, and contractionary policy.
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.
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