Which of the following is NOT a component of fiscal policy?

₹0.0

Question: Which of the following is NOT a component of fiscal policy?

Options:

Correct Answer: Monetary supply

Solution:

Monetary supply is a tool of monetary policy, not fiscal policy. Fiscal policy focuses on government spending, taxation, and transfer payments.

Which of the following is NOT a component of fiscal policy?

Which of the following is NOT a component of fiscal policy?

Step 1: Understand what fiscal policy is. Fiscal policy involves government actions related to spending and taxation.
Step 2: Identify the components of fiscal policy. The main components are government spending, taxation, and transfer payments (like social security).
Step 3: Recognize what monetary policy is. Monetary policy deals with the money supply and interest rates, managed by a central bank.
Step 4: Determine which option is NOT part of fiscal policy. Since monetary supply is related to monetary policy, it is NOT a component of fiscal policy.

No concepts available.