THE POLICY UNDER WHICH THE GOVERNMENT USES THE INSTRUMENT OF TAXATION, PUBLIC SPENDING AND PUBLIC BORROWING TO ACHIEVE VARIOUS OBJECTIVES OF ECONOMIC POLICY IS a. fiscal policy b. monetary policy c. public policy d. cheap money policy

Question

THE POLICY UNDER WHICH THE GOVERNMENT USES THE INSTRUMENT OF TAXATION, PUBLIC SPENDING AND PUBLIC BORROWING TO ACHIEVE VARIOUS OBJECTIVES OF ECONOMIC POLICY IS a. fiscal policy b. monetary policy c. public policy d. cheap money policy

Answer 1

The correct answer is a. fiscal policy.Fiscal policy refers to the use of government spending and taxation to influence the economy. It is a key tool for achieving various economic objectives, such as promoting economic growth, controlling inflation, and reducing unemployment. Fiscal policy can be used to stimulate economic activity during a recession or to cool down an overheating economy. It can also be used to redistribute income and achieve social objectives.Monetary policy, on the other hand, refers to the actions taken by a central bank to manage the money supply and interest rates in order to achieve macroeconomic objectives such as price stability, full employment, and economic growth.Public policy is a broader term that refers to the actions taken by the government to achieve its objectives, which can include both fiscal and monetary policy, as well as other measures such as regulations and public services.Cheap money policy is a term used to describe a situation where the central bank keeps interest rates low to stimulate economic activity, which can be a part of monetary policy.

Вопрос

THE POLICY UNDER WHICH THE GOVERNMENT USES THE INSTRUMENT OF TAXATION, PUBLIC SPENDING AND PUBLIC BORROWING TO ACHIEVE VARIOUS OBJECTIVES OF ECONOMIC POLICY IS a. fiscal policy b. monetary policy c. public policy d. cheap money policy

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Ответ