ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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contribute to economic growth and stability
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keep rich people from getting too rich
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functions exactly like Fiscal Policy
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give Congress and the political parties more control of the economy
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Detailed explanation-1: -Both monetary and fiscal policies are used to regulate economic activity over time. They can be used to accelerate growth when an economy starts to slow or to moderate growth and activity when an economy starts to overheat. In addition, fiscal policy can be used to redistribute income and wealth.
Detailed explanation-2: -fiscal policy, measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. Fiscal measures are frequently used in tandem with monetary policy to achieve certain goals.
Detailed explanation-3: -Fiscal policy in India aims to raise a considerable quantity of money to fund the government’s various programmes through taxes. It aims to eliminate inequality in income and wealth distribution by giving sufficient incentives to the private sector.
Detailed explanation-4: -Fiscal Policy and Price Stability: The main cause of demand-pull inflation has been the fiscal deficit in Government’s budgets which has arisen because Government has not been able to finance the mounting public expenditure through revenue from taxes and public sector surpluses.
Detailed explanation-5: -Fiscal policy plays crucial role in underdeveloped countries by making investment in strategic industries and services of public utility on one side and induces investment in private sector by giving assistance to new industries and introduces modern techniques of production.