Question : The process of collecting taxes in order to fund government expenditures is known as:
Option 1: Fiscal policy
Option 2: Monetary policy
Option 3: Budgetary policy
Option 4: Taxation policy
Correct Answer: Taxation policy
Solution : The correct answer is (d) Taxation policy.
Taxation policy refers to the process of collecting taxes from individuals, businesses, and other entities to generate revenue for the government. It involves setting tax rates, determining tax bases, and implementing tax laws and regulations. Taxation policy is an essential component of fiscal policy, which encompasses the government's use of taxation and government spending to influence the economy. By collecting taxes, the government funds its various expenditures, including public services, infrastructure development, defense, healthcare, education, and social welfare programs.
Question : The process of allocating government resources in order to meet the goals and objectives of the government is known as:
Question : The process of increasing the money supply and/or lowering interest rates in order to stimulate economic growth is known as:
Question : The process of increasing government spending and/or decreasing taxes in order to stimulate economic growth is known as:
Question : The government's policy of reducing taxes to stimulate economic growth is known as ____________.
Question : The process of increasing taxes and/or decreasing government spending in order to slow down an overheating economy is known as:
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