An expansionary fiscal policy consists of: MCQ with Answer and Explanation

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An expansionary fiscal policy consists of:

A. reducing taxes or increasing government expenditure

B. increasing taxes and reducing government expenditure

C. reducing money supply

D. raising the repo rate

Answer: Option A

Solution (By JKSSB Mock Tests)

Expansionary fiscal policy increases aggregate demand through lower taxes or higher government expenditure.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is a feature of the mixed economy model adopted by India?

A. Absence of market mechanism

B. Coexistence of public and private sectors with government regulation

C. Complete private ownership of all means of production

D. Complete central planning without private enterprise

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Correct Answer: Option B

Explanation:
India adopted a mixed economy framework where both public and private sectors coexist, with the government playing a regulatory and developmental role.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on lottery tickets is:

A. 18%

B. 28%

C. 0%

D. 12%

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Correct Answer: Option B

Explanation:
Lottery tickets attract 28% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Union Budget' is presented in Parliament by the:

A. Prime Minister

B. President

C. Finance Minister

D. Finance Secretary

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Correct Answer: Option C

Explanation:
The Union Budget is presented by the Finance Minister.

This question belongs to: Economy GK Economy Set 1

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