Fiscal Policy includes:
A. Govt Expenditure
B. Taxation
C. Deficit Financing
D. Open market operation
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
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.