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

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