Question

5. Fiscal policy instruments are

(a) Public Revenue (b) Public Expenditure

(c) Public Debt (d) All the above

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Answer 1

Answer:

Instruments of Fiscal Policy:

The tools of fiscal policy are taxes, expenditure, public debt and a nation's budget. They consist of changes in government revenues or rates of the tax structure so as to encourage or restrict private expenditures on consumption and investment.

Answer 2

Explanation:

(c) Public Debt

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