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Fiscal policy is government action that involves:A.environmental regulation.B.taxation and spending.C.foreign relations.D.criminal prosecution.

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Solution 1

Breaking Down the Question

  1. Identify what fiscal policy entails.
  2. Analyze the options provided to find the most relevant one.

Relevant Concepts

  • Fiscal Policy: Refers to government actions regarding taxation and public spending to influence the economy.

Analysis and Detail

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Fiscal policy describes a government's actions related to:A.taxing citizens.B.declaring wars.C.punishing crimes.D.printing money.

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Fiscal policy is NOT often used as a stabilisation tool. However, it does have important roles in the economy. Three of these roles are:

Changes that do not occur automatically but rather are made at the option of the federal government are known as (one word) fiscal policy.

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