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      Question

      Which of the following is NOT True regarding Fiscal

      Policy?
      A To maintain and achieve full employment Correct Answer Incorrect Answer
      B To stabilize the price level Correct Answer Incorrect Answer
      C To stabilize the growth rate of the economy Correct Answer Incorrect Answer
      D To maintain deficit in Balance of Payments Correct Answer Incorrect Answer
      E To promote economic development Correct Answer Incorrect Answer

      Solution

      Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.┬а The main objectives of Fiscal Policy are: тАвTo maintain and achieve full employment тАвTo stabilize the price level тАвTo stabilize the growth rate of the economy тАвTo maintain equilibrium in Balance of Payments тАвTo promote economic development

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