Question

What do you mean by Fiscal Policy ? Explain objective and scope of Fiscal Policy.

Answer 1

ANSWER

Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.

Answer 2

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Fiscal policy means the use of taxation and public expenditure by the government for stabilization or growth of the economy. Fiscal policy also feeds into economic trends and influences monetary policy. When the government receives more than it spends, it has a surplus.