Multiple choice

Which of the following is not an objective of fiscal policy?

  1. Desirable level of prices

  2. Desirable level of income distribution

  3. Desirable level of employment

  4. Desirable equilibrium in balance of payments
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D Correct answer
Explanation

It is not an objective of fiscal policy. The balance of payments is the record of all transactions made between one country and all other countries during a specified period of time. To achieve its desirable level is not an objective of fiscal policy, as it cannot be achieved through taxes or government spending alone.

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