Question

which one of the following is not a tool of fiscal policy

Answer 1

Explanation:

The Answer is D.

Private Investment is not a fiscal policy tool. Note that fiscal policy is a tool of the government. Private investment cannot be part of the fiscal policy as the government has no direct control over said investment. The fiscal policy tools include taxation and government spending.

Please mark me as brainliest if it helps and follow me

Answer 2

Answer:

Which among the following is not a tool, of fiscal policy?

1) Government expenditure

2) taxation

3) transfer payments

4) Bank Rate​

The required answer is option (4) Bank Rate

Explanation:

• Fiscal policy is a tool for influencing the state of the economy through taxation and spending. It is distinct from the monetary policy that is managed by that nation's central bank. These two measures taken together can aid a nation in achieving its economic objectives. Government receipts (revenue and capital), government expenditures (revenue and capital), and public debt make up the three basic pillars of any nation's fiscal policy.

• Private investment is not an instrument for monetary policy. Note that the government uses fiscal policy as one of its tools. Since the government has no direct control over private investment, it cannot be included in the budgetary policy. Taxation and public spending are two fiscal policy measures.

Therefore, (4) Bank Rate one of the following is not a tool of fiscal policy.

#SPJ3