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Question

Fiscal policy refers to the policy of the ____________.

A
Government finance
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B
monetary authority
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C
money lenders
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D
commercial banks
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Solution

The correct option is D Government finance
Government finance is the deliberate manipulation of revenues and expenditures of thegovernment. It is the financial plan of the government. The government uses the different types of revenues and expenditures as fiscal tools to achieve different objectives.

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