Question : Which of the following is a tool for fiscal consolidation?
Option 1: Tax cuts
Option 2: Increased government spending
Option 3: Deficit financing
Option 4: Austerity measures
Correct Answer: Austerity measures
Solution : The correct answer is (d) Austerity measures.
Austerity measures refer to policies implemented by governments to reduce budget deficits and achieve fiscal consolidation. These measures typically involve reducing government spending and increasing taxes to control borrowing and reduce the fiscal deficit.
Question : The 1991 economic policy aimed to reduce the fiscal deficit and promote fiscal discipline through:
Question : The process of increasing government spending and/or decreasing taxes in order 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:
Question : Which of the following is a part of budgetary deficit.
Question : Which of the following is a measure of the size of the government budget?
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