Question

Write short notes on Fiscal functions of the Government.

Answer 1

The idea is to find a balance between tax rates and public spending. For example, stimulating a stagnant economy by increasing spending or lowering taxes runs the risk of causing inflation to rise. ... By paying for such services, the government creates jobs and wages that are in turn pumped into the economy.

Answer 2

The idea is to find a balance between tax rates and public spending. For example, stimulating a stagnant economy by increasing spending or lowering taxes runs the risk of causing inflation to rise. ... By paying for such services, the government creates jobs and wages that are in turn pumped into the economy