The Standard of Value is the benchmark against which the Department of Finance (DoF) assesses the value for money of government expenditure. It is used to inform government decision-making on the best use of public resources. The Standard of Value is also known as the cost-benefit analysis. Which of the following is the main objective of fiscal policy? The main objective of fiscal policy is to manage the government's finances, including revenue, spending, and borrowing. Fiscal policy can be used to stabilize the economy, promote economic growth, or distribute resources among different sectors of the economy. What is the term of a standard of value and a means of exchange or payment? A standard of value is a measure of the worth of goods or services in terms of a unit of currency. A means of exchange or payment is a system or process by which goods or services are exchanged for other goods or services.
What are the three types of fiscal policy?
There are three types of fiscal policy: expansionary, contractionary, and balanced.
Expansionary fiscal policy is when the government spends more money than it takes in through taxes. This stimulates the economy by increasing demand and creating jobs.
Contractionary fiscal policy is when the government taxes more and spends less. This slows the economy by reducing demand and causing layoffs.
Balanced fiscal policy is when the government spends the same amount of money as it takes in through taxes. This is the most sustainable approach and leads to moderate economic growth.
What is standard of value in finance? In finance, the standard of value is the price or rate of return that is used to determine the value of an asset. This can be the current market price, the historical price, or the expected future price. The standard of value is important because it provides a benchmark against which to measure the performance of an investment. What are the 2 types of fiscal policy? 1. Expansionary fiscal policy: This type of fiscal policy occurs when the government spends more money than it takes in, resulting in a deficit. This is usually done in an effort to stimulate the economy by increasing aggregate demand.
2. Contractionary fiscal policy: This type of fiscal policy occurs when the government taxes more and/or spends less, resulting in a surplus. This is usually done in an effort to slow the economy and reduce inflationary pressures.