[amp_mcq option1=”Export and Import” option2=”Public revenue and expenditure” option3=”Issue of currency” option4=”Control of population” correct=”option2″]<\/p>\n
The correct answer is: B. Public revenue and expenditure<\/strong><\/p>\n Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are taxation and government spending.<\/p>\n Taxation is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental authority, typically to fund government spending and various public expenditures.<\/p>\n Government spending is the purchase of goods and services by a government. It is usually included in the gross domestic product (GDP) as part of the final consumption expenditure.<\/p>\n Export and import are the two main components of international trade. Export is the sale of goods and services by a country to other countries. Import is the purchase of goods and services by a country from other countries.<\/p>\n Issue of currency is the process of creating new money. It is usually done by a central bank.<\/p>\n Control of population is the process of regulating the size and growth of a population. It is usually done by government policies.<\/p>\n In conclusion, fiscal policy is related to public revenue and expenditure. It is a tool that governments use to influence the economy.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Export and Import” option2=”Public revenue and expenditure” option3=”Issue of currency” option4=”Control of population” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-58657","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n