Outline the rules of functional finance

      

Outline the rules of functional finance

  

Answers


Judy
1) The financial responsibility of the government or state is to regulate spending in such a way that the supply of goods and services may be absorbed at the current prices.

2) The purpose of borrowing is not to raise money but to make the public hold more bonds and less money.


3) The purpose of taxation is never to raise money but to leave less money in the hands of the tax payer. Taxation is governed entirely by whether the effect on spending is desirable or not.

4) Deficit financing can be adopted when the government money outlay exceeds the current money revenue of the government especially in periods of deflation.
Judiesiz answered the question on July 10, 2018 at 07:14


Next: What are the likely consequences of public deficit?
Previous: Outline the objectives of fiscal policy in developing countries.

View More Finance Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions