Fiscal policy tools can achieve, or at least attempt to achieve, both economic and political goals. answer choices . The government collects money from the public through income taxes, sales taxes, and other indirect taxes. check_circle Expert Answer. The main tools of the fiscal policy of any government are two. During a recession, by lowering taxes or increasing government spending, fiscal policy Answer : c. Question 2 : Fiscal policy in India is formulated by. a) Reserve Bank of India. Choose the 2 answers below that are fiscal policy tools of the Federal Government. Local referendums. Federal Reserve Tools Fiscal Policy Tools Discount rate taxing Reserve Requirement spending borrowing One tool is missing from the Federal Reserve’s list of tools. Q. Questions are typically answered in as fast as 30 minutes. Tags: Question 16 . See Answer. 30 seconds . Learn vocabulary, terms, and more with flashcards, games, and other study tools. The main fiscal policy tools are taxation and spending; in contrast, monetary policy involves the availability and cost of money, or more specifically, credit. a) Primary defecit. SURVEY . There are four monetary policy tools: open market operations , which is the buying and selling of government bonds; and changes to reserve requirements, the discount rate, and the interest paid on required and excess reserves. On the one hand, more taxes means more income for the government, but it also results in less income in the hand of the people. What are the three tools of fiscal policy? 6. Please refer to the following chart to answer question number 1. Practice FP questions for the test. fiscal policy tools. Fiscal policy refers to use of government expenditure, taxation policies for influencing macro economic situation of country.J M Keynes was major economist who suggest use of fiscal policy to influenc view the full answer Fiscal Policy refers to the methods employed by the government to influence and monitor the economy by adjusting taxes and/or public spending. Tixes a. b. c. fullscreen. If the economy was going into a recession, what … Answer : c. Question 3 : If we deduct grants to states for the creation of capital assets from revenue deficit, we arrive at. Let’s have a look at them – #1 – Taxes. Fiscal policy is one of two main types of control a government or its agencies can exercise over an economy. Taxation includes taxes on income, property, sales, and investments. Taxes. Check out a sample Q&A here. Two Primary Tools of fiscal policy. Solution for Explain the Economic Concepts of the Fiscal Policy : 1. inception 2. tools 3. goals Want to see the step-by-step answer? Top Answer. Government Spending. c) Finance Ministry. Start studying Practice Fiscal Policy Questions. This is the main tool through which the government collects money from the public. Step-by-step answers are written by subject experts who are available 24/7. this is the release and subsctraction of amount of money in economy by variuos tools (like loans to banks). d) Securities and Exchange Board of India. ... policy is one that containes money. Discount Rate. Question: Handout 19-1 Print THE TOOLS OF FISCAL POLICY Name Class Changes In Federal Taxes And Federal Government Spending That Are Designed To Affect The Level Of Aggregate Domand (and In Some Cases Aggregate Supply In The Economy Are Called Fiscal Policy. b) Planning Commission. Answer. A government has two tools at its disposal under the fiscal policy – taxation and public spending. 5. * Want to see this answer and more? Taxes, sales, and other study tools property, sales, and other taxes! 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