Fiscal policy describes a government's actions related to:A.taxing citizens.B.declaring wars.C.punishing crimes.D.printing money.
Question
Fiscal policy describes a government's actions related to:
A. taxing citizens
B. declaring wars
C. punishing crimes
D. printing money
Solution
Fiscal policy describes a government's actions related to A. taxing citizens.
Here's why:
A. Taxing citizens: Fiscal policy involves the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. So, this is the correct answer.
B. Declaring wars: This is more related to a government's foreign policy rather than its fiscal policy.
C. Punishing crimes: This is related to a government's criminal justice policy, not its fiscal policy.
D. Printing money: This is typically considered a part of monetary policy, which is handled by a central bank rather than the government's fiscal policy.
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