n NISM Certifications
XV NISM Series XV
Medium

In expansionary fiscal policy, the government uses its excess income to repay debts or acquire assets. True or False?

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

Expansionary fiscal policy involves increasing government spending or cutting taxes to stimulate growth. Debt repayment or asset acquisition reflects contractionary or neutral fiscal policies.

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