Question

    Taxation is primarily a tool of which

    policy?
    A Monetary policy Correct Answer Incorrect Answer
    B Fiscal policy Correct Answer Incorrect Answer
    C Price policy Correct Answer Incorrect Answer
    D Wage policy Correct Answer Incorrect Answer

    Solution

    Taxation is a fundamental aspect of fiscal policy, used by governments to influence the economy by adjusting spending levels and tax rates. It is not directly related to monetary policy, which typically involves controlling the money supply and interest rates.

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