The role of fiscal policy is __________ in a free market economy.
The role of fiscal policy is minimum in the ideal free-market model because resource allocation is primarily guided by private decisions and market prices. Greater…
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The role of fiscal policy is __________ in a free market economy.
Answer and explanation
Correct answer A
The role of fiscal policy is minimum in the ideal free-market model because resource allocation is primarily guided by private decisions and market prices. Greater government direction of production and allocation would move the economy away from that model.
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Rajasthan SET (RSET)