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Which one is not the main objective of fiscal policy in India?
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- To increase liquidity in the economy
- To promote price stability
- To minimize the inequalities of income & wealth
- To promote employment opportunity
- To increase liquidity in the economy
Correct Option: A
Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy. It is used to stabilize the economy over the course of the business cycle. Fiscal policy is the sister strategy to monetary policy through which a central bank influences a nation’s money supply.
