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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

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