UPSC Exam  >  UPSC Questions  >  The fiscal policy of a Government is best des... Start Learning for Free
The fiscal policy of a Government is best described as 
  • a)
    Government expenditure
  • b)
    Revenue collection
  • c)
    Government expenditure - Revenue collection
  • d)
    The use of government expenditure and revenue collection (taxation) to influence the economy
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
The fiscal policy of a Government is best described asa)Government exp...
In economics and political science, fiscal policy is the use of government expenditure and revenue collection (taxation) to influence the economy. Fiscal policy can be contrasted with the other main type of macroeconomic policy, monetary policy, which attempts to stabilize the economy by controlling interest rates and spending. The two main instruments of fiscal policy are government expenditure and taxation. Changes in the level and composition of taxation and government spending can impact the following variables in the economy: 
Aggregate demand and the level of economic activity; 
The pattern of resource allocation;
The distribution of income. 
Fiscal policy refers to the use of the government budget to influence the first of these: economic activity. 
View all questions of this test
Explore Courses for UPSC exam

Top Courses for UPSC

The fiscal policy of a Government is best described asa)Government expenditureb)Revenue collectionc)Government expenditure - Revenue collectiond)The use of government expenditure and revenue collection (taxation) to influence the economyCorrect answer is option 'D'. Can you explain this answer?
Question Description
The fiscal policy of a Government is best described asa)Government expenditureb)Revenue collectionc)Government expenditure - Revenue collectiond)The use of government expenditure and revenue collection (taxation) to influence the economyCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The fiscal policy of a Government is best described asa)Government expenditureb)Revenue collectionc)Government expenditure - Revenue collectiond)The use of government expenditure and revenue collection (taxation) to influence the economyCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The fiscal policy of a Government is best described asa)Government expenditureb)Revenue collectionc)Government expenditure - Revenue collectiond)The use of government expenditure and revenue collection (taxation) to influence the economyCorrect answer is option 'D'. Can you explain this answer?.
Solutions for The fiscal policy of a Government is best described asa)Government expenditureb)Revenue collectionc)Government expenditure - Revenue collectiond)The use of government expenditure and revenue collection (taxation) to influence the economyCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of The fiscal policy of a Government is best described asa)Government expenditureb)Revenue collectionc)Government expenditure - Revenue collectiond)The use of government expenditure and revenue collection (taxation) to influence the economyCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The fiscal policy of a Government is best described asa)Government expenditureb)Revenue collectionc)Government expenditure - Revenue collectiond)The use of government expenditure and revenue collection (taxation) to influence the economyCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for The fiscal policy of a Government is best described asa)Government expenditureb)Revenue collectionc)Government expenditure - Revenue collectiond)The use of government expenditure and revenue collection (taxation) to influence the economyCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of The fiscal policy of a Government is best described asa)Government expenditureb)Revenue collectionc)Government expenditure - Revenue collectiond)The use of government expenditure and revenue collection (taxation) to influence the economyCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The fiscal policy of a Government is best described asa)Government expenditureb)Revenue collectionc)Government expenditure - Revenue collectiond)The use of government expenditure and revenue collection (taxation) to influence the economyCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev