ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Federal Reserve Bank
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The President and Congress
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Either A or B
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None of the above
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Detailed explanation-1: -Congress has a big role to play in fiscal policy. It is one of the bodies that help shape the country’s spending and tax policies along with the executive branch.
Detailed explanation-2: -Ministry of Finance formulates the fiscal policy.
Detailed explanation-3: -The correct answer is the Ministry of Finance. Fiscal policy is formulated by the Ministry of Finance.
Detailed explanation-4: -There are three types of fiscal policy. They are neutral policy, expansionary policy, and contractionary policy.
Detailed explanation-5: -Fiscal policy is concerned with public revenue, public expenditure, and debt. Fiscal policy is the part of government economic policy which deals with, expenditure, taxation, borrowing and the management of public debt in the economy. It is basically concerned with the flow of funds in the economy.