2. Discuss briefly the role of the government budget in influencing – InterviewSolution

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1.	2. Discuss briefly the role of the government budget in influencing "allocation ofresources” in the economy.
Answer» ent can INFLUENCE allocation of RESOURCES through (i) tax concessions, subsidies, etc. and (ii) DIRECTLY producing goods and SERVICES. To encourage investment government can give tax concession, subsidies etc. to the producers. ... When there is inflation, government can REDUCE its own expenditure.

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