Economy, asked by aishasharmaas8730, 8 months ago

Which among the following is not an instrument of fiscal policy?
A) Taxation B) Public expenditure C) Public debt D) Credit Rationing

Answers

Answered by anooja66anu
0

Answer:

Correct Answer: C [Credit Rationing]

Some of the major instruments of fiscal policy are Budget, Taxation, Public Expenditure, Public Works, Public Debt, etc. 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.

Explanation:

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Answered by marishthangaraj
0

Option D) Credit rationing is not a fiscal policy tool.

Fiscal policy's primary instruments are the budget, taxes, public spending, public works, public debt, etc.

What is meant by the phrase "fiscal policy"?

  • Fiscal policy is the term used to describe how the government uses taxation and spending to influence the economy.
  • Governments frequently utilize fiscal policy to promote the strong, long-term growth and reduce poverty.
  • The role and objectives of fiscal policy became more visible during the recent global economic crisis as governments intervened to stabilize financial institutions, promote growth, and alleviate the impact of the crisis on vulnerable populations.

How is a budgetary policy put into practice?

  • The two primary tools accessible to policymakers when they wish to influence the economy are monetary policy and fiscal policy.
  • Changes in interest rates, bank reserve requirements, the purchase and sale of government securities, and foreign exchange all have an impact on the money supply and are all indirectly targeted by central banks.

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