ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A balance in the balance of payments
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Price stability
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Low unemployment
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Income and wealth distribution
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Detailed explanation-1: -To increase liquidity in economy is not the main objective of Fiscal Policy in India.
Detailed explanation-2: -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-3: -Detailed Solution. The correct answer is Interest Rate. Interest Rate does not form part of the fiscal policy of a country.
Detailed explanation-4: -The Answer is D. Private Investment is not a fiscal policy tool. Note that fiscal policy is a tool of the government. Private investment cannot be part of the fiscal policy as the government has no direct control over said investment.