Taxes and government expenditures are instruments of____________

  • A Monetary policy
  • B Tax policy
  • C Economic policy
  • D Fiscal policy
jamb 2018economics

The correct answer is D. Fiscal policy

Fiscal policy may be defined as the use of income and expenditure instruments or policies to control or regulate the economic activities in a country. It is a plain action by government pertaining to the raising of revenue through taxation and other means and the pattern of expenditure to be applied.

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