fiscal

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter26: Tax Practice And Ethics
Section: Chapter Questions
Problem 3DQ
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Question

When a government lowers taxes it is employing ________.

A)  fiscal policy

B)  monetary policy

C)  domestic policy

D)  the law of one price

Expert Solution
Step 1

Introduction:

Tax can be defined as mandatory levy by the government on the citizens of the country. It is imposed on both individuals & organizations. Individuals pay income tax & companies pay corporate taxes. Tax is considered to be an important source of revenue for the government in order to conduct the operations of the country.

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