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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.ย  The main objectives of Fiscal Policy are: โ€ขTo maintain and achieve full employment โ€ขTo stabilize the price level โ€ขTo stabilize the growth rate of the economy โ€ขTo maintain equilibrium in Balance of Payments โ€ขTo promote economic development

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