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    Question

    What does the term Fiscal Policy mean? Fiscal policy is

    associated with which of the following?
    A Changes in Taxes Correct Answer Incorrect Answer
    B Revenue of the Government Correct Answer Incorrect Answer
    C Expenditure of the Government Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E Its only about Taxes and Revenue Correct Answer Incorrect Answer

    Solution

    Taxation, public spending, and public borrowing are all examples of instruments that fall under the purview of the government's fiscal policy, which is the policy that determines how the government pursues its many economic policy goals. To put it another way, the strategy of the government to create sustainable growth involves increasing both expenditure and revenue.

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