Taxation is a tool of

(A) Monetary policy
(B) Fiscal policy
(C) Price policy
(D) Wage policy

Correct Answer : Fiscal policy
Question Asked : SSC (10+2) Level Data Entry Operator & LCD Exam 2011
Explanation : In economics, 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 government taxation and expenditure.
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Tags : macroeconomics
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