Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Fiscal Policy includes:

A. Govt Expenditure
B. Taxation
C. Deficit Financing
D. Open market operation

Choose the correct answer from the options given below:

Options:

A & B Only

B, C & D Only

A, B, & C Only

A, B, C & D Only

Correct Answer:

A, B, & C Only

Explanation:

The correct answer is Option (3) → A, B, & C Only

Fiscal policy refers to the government's use of spending (A) and taxation (B) to influence the economy. It also includes deficit financing (C) which involves borrowing money to cover the gap between government spending and revenue.

Open market operations (Option D) are not part of fiscal policy but rather a tool used in monetary policy by central banks.