Define Fiscal Policy and the instruments of Fiscal policy
Q. Definition of Fiscal policy
Ans: Fiscal policy is a package of economic measures of the government regarding public expenditure, public revenue, public debt or public borrowings. It concerns itself with the aggregate effects of government expenditure and taxation on income, production and employment. It refers to the budgetary policy of the government. Unlike monetary policy, these measures involve direct government interferences in the market for goods and services and direct impact on private demand.
Q. Explanation of Instruments of Fiscal Policy.