Question

Which of the following policies of a country brings a crucial impact on the economic growth of the nation?
A. Fiscal policy
B. Foreign policy
C. Social policies

• A. Only (A)
• B. Only (B)
• C. Only (A) and (B)
• D. Only (B) and (C)

Answer 1

Answer: (A)

Only (A)

Fiscal policy is the means by which a government adjust its spending levels and tax rates on 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. It is very much important for the economic growth of the country. Hence, fiscal policy of a country brings a crucial impact on the economic growth of the nation.