Home › Bihar Board Class 12 (Arts) › Economics › Introduction to Economics › Fiscal policy uses which two instruments to infl…
Fiscal policy uses which two instruments to influence the economy?
AInterest rates and reserves
BExchange rates and tariffs
CTaxes and government spending
DCredit and bond issues
Answer & Solution
Correct answer: C. Taxes and government spending
Fiscal policy works through government revenue from taxes and its spending.
Related questions
In the AD-AS model, the aggregate demand curve slopes in which direction?Which model, invented by John Hicks in 1936, shows equilibrium in goods and money markets?Government spending that limits resources for private firms is an example of what?Expansionary monetary policy does what to interest rates?Central banks conduct monetary policy mainly by adjusting what?Stabilization policy mainly uses which two sets of tools?The long-run emphasis in macroeconomics is on determinants of what?The short run in macroeconomics refers to a few years and focuses mainly on what?