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Question
Fiscal policy means public expenditure and tax policy of the government.
Options
True
False
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Solution
This statement is True.
Explanation:
Fiscal policy refers to the government's use of public expenditure (spending) and tax policies to influence the economy.
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RELATED QUESTIONS
Read the following statements carefully and choose the correct alternative:
Assertion (A): Income tax is a direct tax.
Reason (R): GST is an indirect tax.
Name any two instruments of Fiscal Policy.
Differentiate between direct and indirect taxes.
Citing reason state the advantage of a progressive tax over proportional tax.
Classify the following type of tax into direct and indirect taxes:
Income tax
Briefly explain why direct taxes foster civic consciousness among people.
Give two reasons why the government imposes tax?
State two differences between income tax and commodity tax.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
Three demerits of an Indirect tax.
