What are the objectives of government taxation and spending?
What will be an ideal response?
There are four main objectives of government taxation and spending:
1. To correct market failures and externalities
2. To raise revenues
3. To redistribute funds
4. To finance operations
Economics
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Define discounted value of a future payment
What will be an ideal response?
Economics
If the price level is fixed, then an increase in government spending will lead to
A) a larger increase in nominal GDP than in real GDP. B) a smaller increase in nominal GDP than in real GDP. C) no increase in either nominal GDP or real GDP. D) an increase in nominal GDP by the same amount as an increase in real GDP.
Economics