Economics · Macroeconomic Theories and Indian Budgeting
Which of the following statements is/are correct? 1. According to Richard Musgrave's three-branch framework, the distribution function of the budget involves using progressive taxation and transfer payments like social security to redistribute income. 2. Ricardian Equivalence, formalised by Robert Barro, suggests that the fiscal multiplier of a deficit-financed tax cut is greater than one because households increase consumption immediately. 3. In the Indian budgetary process, the Appropriation Bill is passed to authorize government spending from the Consolidated Fund of India, while the Finance Bill is enacted to give legal effect to taxation proposals. Select the answer using the code given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2 and 3
- 22 and 3 only
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- 41 and 2 only
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1 and 3 only
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