Question

whats fiscal policy

Answer 1

If we talk in simple terms then fiscal policy comes under the government policy in which government by using the two methods control the money supply in the economy

the two methods is by -

• increasing or decreasing the government spending
• increasing or lowering the tax

it is basically of two types expansionary fiscal policy and contractionary fiscal policy

when the goal is to increase the money supply and size then the government focuses on expansionary fiscal policy and opposite is also true