To maintain price stability

To promote economic growth

To reduce unemployment

To ensure social welfare

Government spending

Taxation

Interest rates

Foreign exchange rates

By influencing aggregate demand

By influencing the cost of capital

By influencing the exchange rate

By influencing the level of employment

It increases aggregate demand

It decreases aggregate demand

It has no impact on aggregate demand

It is uncertain

It decreases aggregate demand

It increases aggregate demand

It has no impact on aggregate demand

It is uncertain

Fiscal policy is implemented by the government, while monetary policy is implemented by the central bank.

Fiscal policy uses government spending and taxation as its instruments, while monetary policy uses interest rates and reserve requirements as its instruments.

Fiscal policy is more effective in the short run, while monetary policy is more effective in the long run.

All of the above

High fiscal deficit

Low tax revenue

Inefficient public expenditure

All of the above

Introduction of the Goods and Services Tax (GST)

Implementation of the Direct Benefit Transfer (DBT) scheme

Adoption of the Fiscal Responsibility and Budget Management (FRBM) Act

All of the above

Continued focus on fiscal consolidation

Increased emphasis on social welfare

Greater use of technology in tax administration

All of the above

To advise the government on fiscal policy

To implement fiscal policy

To monitor the impact of fiscal policy on the economy

All of the above

Fiscal policy and monetary policy are independent of each other.

Fiscal policy and monetary policy are complementary to each other.

Fiscal policy and monetary policy are substitutes for each other.

Fiscal policy and monetary policy are unrelated to each other.

Fiscal policy can be slow to take effect.

Fiscal policy can be difficult to reverse.

Fiscal policy can be politically unpopular.

All of the above

Fiscal policy can be used to target specific sectors of the economy.

Fiscal policy can be used to redistribute income.

Fiscal policy can be used to stabilize the economy.

All of the above

Discretionary fiscal policy is implemented by the government, while automatic fiscal policy is implemented by the central bank.

Discretionary fiscal policy is implemented in response to economic conditions, while automatic fiscal policy is implemented regardless of economic conditions.

Discretionary fiscal policy is more effective in the short run, while automatic fiscal policy is more effective in the long run.

None of the above

Fiscal policy can appreciate the exchange rate.

Fiscal policy can depreciate the exchange rate.

Fiscal policy has no impact on the exchange rate.

It is uncertain