Question

“Today every country aims at its economic growth to improve living standard of its
people. Besides, there are many other problems such as poverty, unemployment,
inequalities in incomes and wealth etc. Government strives hard to solve these problems
through budgetary measures. The budget shows the fiscal policy”.
a) Show the importance of Govt. Budget in framing fiscal policy.

Answer 1

Answer:

To increase economic growth

Lower interest rates – reduce the cost of borrowing and increase consumer spending and investment.

Increased real wages – if nominal wages grow above inflation then consumers have more disposable to spend.

Higher global growth – leading to increased export sending...

Answer 2

Answer:

Hope it helps you.