Respuesta :
Taxation and spending are government action that comes under Fiscal policy. Thus, option A is correct
What is fiscal policy?
Fiscal policy is a way by which the government controls or shows the effect on the economy by controlling the spending and taxation for the uplifting of the country's economic status.
But this policy only has its effect on a short-term basis and mostly concentrates on income and revenue, which with poverty, unemployment and helps in the country's uplifting.
Fiscal policies are major of two types:
- expansionary
- contractionary
The expansionary policy consists of spending, which is how much is to be spent in the market. the contractionary policy means when the government wants to reduce spending.
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