Neutral, expansionary, and contractionary strategies are related to wh

1.	Neutral, expansionary, and contractionary strategies are related to which policy of the government?1. Monetary policy2. Banking policy3. Budgetary policy4. Fiscal policy
Answer» Correct Answer - Option 4 : Fiscal policy The Correct Answer is Fiscal Policy. Fiscal policy refers to the use of government spending and tax policies to influence economic conditions. Fiscal policy is largely based on ideas from John Maynard Keynes, who argued governments could stabilize the business cycle and regulate economic output. During a recession, the government may employ expansionary fiscal policy by lowering tax rates to increase aggregate demand and fuel economic growth. When inflation mounts, the government may pursue a contractionary fiscal policy.

Neutral, expansionary, and contractionary strategies are related to which policy of the government?1. Monetary policy2. Banking policy3. Budgetary policy4. Fiscal policy

Answer» Correct Answer - Option 4 : Fiscal policy

The Correct Answer is Fiscal Policy.

Fiscal policy refers to the use of government spending and tax policies to influence economic conditions.
Fiscal policy is largely based on ideas from John Maynard Keynes, who argued governments could stabilize the business cycle and regulate economic output.
During a recession, the government may employ expansionary fiscal policy by lowering tax rates to increase aggregate demand and fuel economic growth.
When inflation mounts, the government may pursue a contractionary fiscal policy.

Discussion

No Comment Found

Related InterviewSolutions

Which of the following statement/s is/are true about the National Food security act 2013?a) It was enacted on July 5, 2013.b) The Centre is responsible for transportation of foodgrains up to designated depots in each State/UT.c) NFSA covers up to 75% of the rural population and 50% of the urban population under Antyodaya Anna Yojana (AAY) and priority households.1. a and b2. b and c3. a and c 4. All of the above
The currency exchange rate system in which the exchange rate is determined by demand and supply of currency in the foreign exchange market is called 1. Fixed exchange rate2. Managed exchange rate 3. Flexible exchange rate 4. Dual Exchange rate
As of 2020-21, the Commission for Agricultural Costs and Prices (CACP) does NOT recommend the Minimum Support Price (MSP) for ______.1. sunflower2. groundnut3. soya bean4. linseed
Which of the following statements is/are correct regarding New Education Policy 2020.a) New Curricular and Pedagogical Structure (5+3+3+4).b) Ministry of HRD re-designed as the Ministry of Education (MoE).c) Setting up of a new National Assessment Centre, PARAKH (Performance Assessment, Review, and Analysis of Knowledge for Holistic Development).1. a only 2. b only3. a and b only4. a, b and c
The Economic Survey ______ introduced the concept of ‘Thalinomics’ in an attempt to relate economics to a plate of food.1. 2019-202. 2018-193. 2017-184. 2016-17
Consider the following statements.A) Since 1950-51, the government of India recognised only two types of deficits viz. Revenue and overall budgetary deficit.B) Fiscal deficit was introduced in the year 1997-98 based on the recommendation of the Narasimham committeeWhich of the above statements is /are not correct?1. Both A and B2. A only3. B only4. None of the aove
Which of the following is/was the type of budgetary practice followed in India?1. Zero-base budgeting2. Output and outcome budgeting3. Development budgeting4. Programmed BudgetingChoose the correct answer using the codes below1. 1, 2 and 32. 1 and 2 only3. 2, 3 and 44. 1, 3 and 45. All 1, 2, 3 and 4
The period of rising inflation but falling output and rising unemployment is called:1. recession2. disinflation3. depression4. stagflation
According to Harrod-Domar model, Warranted Rate of Growth depends on which of the following on given incremental capital output ratio:1. Growth rate of labour force2. Marginal Productivity of investment3. Marginal efficiency of capital4. Saving-income ratio
What is the proposed foreign portfolio investor (FPI) limits in corporate bonds as per Budget 2020?1. 11 per cent of outstanding stocks2. 9 per cent of outstanding stocks3. 12 per cent of outstanding stocks4. 15 per cent of outstanding stocks

Neutral, expansionary, and contractionary strategies are related to which policy of the government?1. Monetary policy2. Banking policy3. Budgetary policy4. Fiscal policy

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment