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    Question

    Which of the following things are included in ‘Fiscal

    policy’?
    A Use of taxation Correct Answer Incorrect Answer
    B Public borrowing Correct Answer Incorrect Answer
    C Public expenditure by Government for purposes of ‘stabilization’ or ‘development’ Correct Answer Incorrect Answer
    D All the Above Correct Answer Incorrect Answer
    E None of the Above Correct Answer Incorrect Answer

    Solution

    The four main components of fiscal policy are (i)            Public expenditure, budget reform (ii)           revenue (particularly tax revenue) mobilization, Use of Taxation (iii)          deficit containment/ financing and Public Borrowing or Fiscal Transfers

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