Social Sciences, asked by singhharsh5239, 1 year ago

Role of fiscal policy in economic development

Answers

Answered by jaswanthsharmi
0

Answer:

The various tools of fiscal policy such as budget, taxation, public expenditure, public works and public debt can go a long way for maintaining full employment without inflationary and deflationary forces in underdeveloped economies.

Obviously, taxation and public expenditure is a powerful instrument in the hands of public authority which greatly affect the changes in disposal income, consumption and investment.

Answered by anitagatte3
4

Answer:

Fiscal policy helps to accelerate the rate of economic growth by raising the rate of investment in public as well as private sectors.

Fiscal policy is an important tool for managing the economy because of its ability to affect the total amount of output produced .

Hope it will help you

Be happy always

Similar questions