Which of the following is not an instrument of fiscal policy ?
The cost and availability of credit are instruments of monetary policy. Taxation, public debt and deficit financing concern government revenue, borrowing and expenditure, so…
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Which of the following is not an instrument of fiscal policy ?
Answer and explanation
Correct answer D
The cost and availability of credit are instruments of monetary policy. Taxation, public debt and deficit financing concern government revenue, borrowing and expenditure, so they belong to fiscal policy.
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Rajasthan SET (RSET)