GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Raising the prime interest rate
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Lowering tax rates
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Printing less money
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Borrowing more money
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Detailed explanation-1: -In the short term, governments may focus on macroeconomic stabilization-for example, expanding spending or cutting taxes to stimulate an ailing economy, or slashing spending or raising taxes to combat rising inflation or to help reduce external vulnerabilities.
Detailed explanation-2: -Understanding the Supply-Side Theory Supply-side economics aims to bolster an economy by implementing policies that will lead to an increased supply of goods and services and subsequent economic growth such as: Reducing corporate income tax rates to provide companies with more cash for reinvestment.
Detailed explanation-3: -Expansionary fiscal policy occurs when: the government increases spending or decreases taxes to stimulate the economy toward expansion.
Detailed explanation-4: -PPF (Public Provident Fund) Tax Saving FDs. ELSS (Equity Linked Savings Scheme) NSC (National Saving Certificate) Life Insurance Premium. NPS (National Pension Scheme) Home Loan Repayment. Payment of tuition fees. More items