ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Elected officials
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Mr. Covington
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Police & firefighters
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Pennywise the Clown from the movie IT
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Detailed explanation-1: -In most modern economies, the government deals with fiscal policy while the central bank is responsible for monetary policy.
Detailed explanation-2: -Ministry of Finance formulates the fiscal policy.
Detailed explanation-3: -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-4: -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.
Detailed explanation-5: -Ans: There are four major fiscal functions of government; Allocation, Distribution, Economic Growth and Stabilization.