Question

Fiscal policy is concerned with _____________.

• A. industry
• B. public income and expenditure
• C. foreign trade
• D. issue of currency

Answer 1

Answer: (B)

public income and expenditure

Fiscal policy is the means by which a government adjust its spending levels and tax rates in order to monitor and influence a nation's economy. It is that policy which works with monetary policy and sets the tax rates in the country. Hence, fiscal policy is concerned with public income and expenditure so that there can be a balance between public spending and tax rates.