0
The fiscal policy is necessary to try to achieve macro economic objectives. These include, full employment, stability of internal and external values of the currency, equality and growth and development,etc. The fiscal policy consists of the government expenditure, income and the budget. The government must use the fiscal tools to achieve these objectives but this can be very tricky. At the end of the day it would be ideal if it could maintain a balanced budget (where expenditure is roughly equal to income). If it fails to do so, then there could be huge problems for the economy. By adjusting expenditure and income (mostly taxes) it can influense the entire economy, so its a delicate balancing act since most actions bring about both positive and negative concequences.
Say for example, the government spends too much money on things, it will have to find a way to pay all the bills anway, so they will have to borrow money and in doing so there will be a budget deficit (spending more than you have), inflation, and a squeeze in the funds available for the private sector (if the government enters the private sector to get money, ex. banks)
What else can I help you with?
Fiscal policy and its objectives?
fiscal policy OBJ. in relation to taxation policy and expenditure policy
Who regulate the Fiscal Policy of India?
The president regulates the fiscal policy of India.
What is the meaning and objectives of Fiscal policy?
Fiscal policy is how the government taxes and spends money. The objective of fiscal policy is to influence the economic activity of the governmentâ??s country.
What are the limits to fiscal policy?
The limits to fiscal policy are difficulty of changing spending levels, predicting the future, delayed results, political pressures and coordinating fiscal policy.
What is the aim of Fiscal policy?
One of the major uses of government fiscal policy is to create stability in the economy. To curb inflation would be another use of fiscal policy.
Fiscal policy and its objectives?
fiscal policy OBJ. in relation to taxation policy and expenditure policy
What is fiscal policy centered on?
Fiscal policy is a policy centered on ideas and research.
Who controls fiscal policy?
The president and congress together control the fiscal policy.
Who regulate the Fiscal Policy of India?
The president regulates the fiscal policy of India.
Is instruments of fiscal policy and tools of fiscal policy the same thing?
Yes these are same................
The economic policy that manages the business cycle by changing government spending is called .?
fiscal policy
What is the meaning and objectives of Fiscal policy?
Fiscal policy is how the government taxes and spends money. The objective of fiscal policy is to influence the economic activity of the governmentâ??s country.
What are the limits to fiscal policy?
The limits to fiscal policy are difficulty of changing spending levels, predicting the future, delayed results, political pressures and coordinating fiscal policy.
What is the aim of Fiscal policy?
One of the major uses of government fiscal policy is to create stability in the economy. To curb inflation would be another use of fiscal policy.
Features and effectiveness of fiscal policy?
features of fiscal
What is the use of government spending as a form of economic policy especially when managing the business cycle.?
fiscal policy
The leaders of a small country decide that they need to enact a contractionary fiscal policy Which action is consistent with this fiscal policy?
A reduction in government spending is consistent with a contractionary fiscal policy.
