Respuesta :
Policy is the use of government spending and taxation to influence the economy.
What is fiscal policy?
- Tax reductions and increased public spending are the two main manifestations of expansionary fiscal policy.
- Both of these measures aim to boost overall demand while reducing budget surpluses or adding to deficits.
- There are three types of fiscal policy.
- They are neutral policy, expansionary policy,and contractionary policy.
- The usual goals of both fiscal and monetary policy are to achieve or maintain full employment, to achieve or maintain a high rate of economic growth, and to stabilize prices and wages.
- The central bank of a country mainly administers monetary policy.
- In India, the Monetary Policy is under the Reserve Bank of India or RBI. Monetary policy majorly deals with money, currency, and interest rates.
hence,Policy is the use of government spending and taxation to influence the economy.
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