Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Government's taxation and public Expenditure polices are collectively known as__________.

Options:

Fiscal Policy

Monetary policy

Business policy

GST policy

Correct Answer:

Fiscal Policy

Explanation:

The correct answer is Fiscal Policy.

Fiscal policy is the use of government spending and taxation to influence the economy.

  • Monetary policy is the use of interest rates and other monetary tools to influence the economy.

  • Business policy is the set of decisions that a company makes about how to operate its business.

  • GST policy is the set of rules and regulations that govern the Goods and Services Tax (GST) in India.