Question

Fiscal policies establish a government’s plans for taxation and

A) Spending
B) Profit
C) Debt
D) Saving

Answer 1

the correct answer is A.) Spending

Answer 2

Answer: A). Spending

Step-by-step explanation:

Fiscal policy refers to the policy of the government that is related to its revenue collected from taxes and expenditure. The government can pursue an contractionary fiscal policy when it plans to increase taxes and reduce spending. It takes a expansionary fiscal policy when it decreases taxes and increases spending.

Thus, the correct option is fiscal policies establish a government’s plans for taxation and spending.