Which of the following is one of the key functions of fiscal policy and aims at eliminating the macroeconomic fluctuations arising from sub optimal…

CA Foundation · Business Economics · PYQS · May 2025
Which of the following is one of the key functions of fiscal policy and aims at eliminating the macroeconomic fluctuations arising from sub optimal allocation of resources?
(A) A. The Allocation Function
(B) B. The Redistribution Function
(C) C. The Stabilization Function
(D) D. The Utilisation Function

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. The Stabilization Function

Topics: Public Finance

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