Fiscal policy relates to the Government decision in respect of I. Taxation II. Government spending III.…
Fiscal policy comprises decisions about taxation, government spending, borrowing and debt management. Thus all I–IV belong. I and II alone is a narrower definition; the…
Choose your answer
Fiscal policy relates to the Government decision in respect of
I. Taxation
II. Government spending
III. Government borrowing
IV. Public Debt
Answer and explanation
Correct answer D
Fiscal policy comprises decisions about taxation, government spending, borrowing and debt management. Thus all I–IV belong. I and II alone is a narrower definition; the other partial codes omit central fiscal instruments.
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UGC NET Economics