Multiple choice

The main objective of fiscal policy in the developing countries is to

  1. promote economic growth
  2. mobilise resources for economic growth
  3. ensure economic growth and distribution
  4. increase employment opportunities

  1. only 1 and 2 are correct

  2. only 2 and 3 are correct

  3. only 2 and 4 are correct

  4. 1,2,3 and 4 are correct

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In developing countries, fiscal policy serves multiple objectives: promoting economic growth through public investment, mobilizing resources for development, ensuring equitable distribution of growth benefits, and creating employment opportunities. All four goals listed are valid and interconnected priorities for fiscal policy in developing nations.