The fiscal policy directs the usage of government spending and tax policies to exploit economic conditions, especially macroeconomic circumstances. Fiscal policy includes each of the money supply.
<h3>What does the fiscal policy include?</h3>
The fiscal policy directs the usage of government spending and tax policies to exploit economic conditions, especially macroeconomic circumstances. These contain aggregate demand for goods and benefits, employment, inflation, and economic growth.
Some of the key goals of fiscal policy exist as economic stability, price stability, full employment, optimum allocation of resources, accelerating the rate of economic development, encouraging investment, and capital formation and growth.
Fiscal policy exists as measures employed by governments to stabilize the economy, especially by exploiting the levels and distributions of taxes and government expenditures. Fiscal measures exist frequently utilized in tandem with economic policy to attain specific objectives.
Large-scale underemployment, lack of coordination from the public, tax evasion, and low tax base are the other constraints of fiscal policy.
Therefore, the correct answer is option 1) the money supply.
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