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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
______ are those taxes which are paid by the same person on whom they have been imposed.
Instruments of fiscal policy is:
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
State the difference between income tax and expenditure tax.
What are progressive taxes.
Give an example of Indirect tax.
Give two reasons why the government imposes tax?
Explain briefly two merits of indirect tax.
Explain the state's role in achieving the objective of social justice in less developed countries.
Explain how indirect taxes can be made progressive.
