Which of the following best describes the term, ‘Fiscal Prudence’?
1
It is defined as the ability of a government to sustain smooth monetary operations and long-standing fiscal conditions.
2
It is the difference between the total expenditure of the government and the total receipts of the government, excluding borrowing
3
It is a set of adverse economic circumstances where expansionary monetary policy fails to increase the market interest rates.
4
It is a phenomenon where increased borrowing by the government causes a decrease in the quantity of funds that is available to meet the investment needs of the private sector.