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Which component of fiscal policy is used to stabilize the economy by changing government expenditures and taxes?
  • a)
    Monetary policy
  • b)
    Exchange rate policy
  • c)
    Fiscal deficit policy
  • d)
    Demand management policy
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which component of fiscal policy is used to stabilize the economy by c...
Fiscal policy uses demand management tools such as changing government expenditures and taxes to stabilize the economy and achieve desired growth and stability.
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Which component of fiscal policy is used to stabilize the economy by changing government expenditures and taxes?a)Monetary policyb)Exchange rate policyc)Fiscal deficit policyd)Demand management policyCorrect answer is option 'D'. Can you explain this answer?
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