Taxes and government expenditures are instruments of_____...
Taxes and government expenditures are instruments of____________
Monetary policy
Tax policy
Economic policy
Fiscal policy
Correct answer is D
Fiscal policy may be defined as the use of income and expenditure instruments or policies to control or regulate the economic activities in a country. It is a plain action by government pertaining to the raising of revenue through taxation and other means and the pattern of expenditure to be applied.
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