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Meaning of Fiscal Policy In Public Finance - SS2 Economics Past Questions and Answers - page 1

1
What is fiscal policy?
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A
A tool used by governments to manage the economy through the use of taxes, government spending, and borrowing.
B
A tool used by businesses to manage their finances.
C
A tool used by households to manage their finances.
2
What is the purpose of fiscal policy?
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A
To stimulate the economy.
B
To slow down the economy.
C
Both a and b
3
Which of the following fiscal policies can stimulate economic activity?
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A
Decreasing government spending.
B

Increasing taxes.

 

C
Increasing government spending.
4

What can fiscal policy be used to address?

 

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A
Income inequality.
B
Inflation.
C
Unemployment.
D
All of the above.
5
What is public finance?
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A
The study of how governments collect revenue, spend money, and manage debt.
B
The study of how businesses manage their finances.
C
The study of how households manage their finances.
6
Name three tools used by governments in fiscal policy.
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7

List any three that fiscal policy can be used to address.

 

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