NABTEB Economics 2022 Objective — Question 40

Question 40 of 50 from the National Business and Technical Examinations Board (NABTEB) Economics 2022 Objective paper, with the correct answer and a full explanation.

Fiscal policy measures imply a change in

A. only taxation measures
B. only taxation to control aggregate demand
C. only government expenditure to influence lending
D. government revenue and expenditure to regulate an economyCorrect

Explanation

Fiscal policy is the use of government expenditure, revenue, budget, taxation and debt operations - collectively - to regulate the economy.

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