Question

According to Prof. Gardner Ackley, unlike monetary policy, fiscal measures involve:

पर्याय

• Government control over foreign exchange markets only

• Direct government entrance into the market for goods and services (in case of expenditure) and a direct impact on private demand (in the case of taxes)

• Indirect influence on the economy only through changes in the money supply

• Regulation of interest rates and credit availability in the economy

Answer 1

Prof. Gardner Ackley defined fiscal policy as alterations in government expenditures for goods and services or the level of tax rates. He distinguished it from monetary policy by noting that fiscal measures involve direct government entrance into the market for goods and services and a direct impact on private demand.