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24 May, 10:55

n an attempt to promote renewable energy, the government provides an annual rebate to those who install solar panels on their roofs. What type of economic policy would this represent?

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  1. 24 May, 12:24
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    Answer: Fiscal policy

    Explanation: Fiscal policy refers to the policies implemented by the government fro making the economy stable by using the tax collection and expenditure changes.

    As per the given case, the government provide tax benefits in the forms of rebates for promoting the use of renewable energy resources. Hence we can say that government uses fiscal policy for achieving their objective.
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