Question

Fiscal Policy is concerned with:

• A. Public Revenue, Public Expenditure and Public Debt
• B. Controlling the BOP situation
• C. Controlling the Banks
• D. None of the above

Answer 1

The correct option is A Public Revenue, Public Expenditure and Public Debt

Fiscal Policy is concerned with public revenue and public expenditure and debt. Fiscal policy helps to ensure economic stability and economic growth. During inflation, revenue is decreased. Whereas, during deflation, revenue is increased.