Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which of the following is concerned with reforms in the government's taxation and public expenditure policies ?

Options:

Fiscal policy

Monetary Policy

Direct taxes

Indirect taxes

Correct Answer:

Fiscal policy

Explanation:

The correct answer is option (1) : Fiscal policy

Fiscal policy involves the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. Reforms in taxation and public expenditure fall under the domain of fiscal policy.