Economics · Fiscal Policy
Which among the following statements regarding fiscal policy is incorrect?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Expansionary fiscal policy is an attempt to increase aggregate demand.
- 2Expansionary fiscal policy will help to reduce the budget deficit.✓
- 3Fiscal policy relates to the impact of government spending and taxation on aggregate demand and the economy.
- 4Higher government spending is considered as a tool for expansionary fiscal policy.
Correct answer
Expansionary fiscal policy will help to reduce the budget deficit.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Fiscal Policy MCQs →Want more practice questions on Fiscal Policy?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Fiscal Policy