9. Which policy focuses on collecting taxes and government spending?
A. Foreign policy
B. Fiscal policy
C. Monetary policy
D. Labor policy
Answer (1)
The answer is letter B. Fiscal policyFiscal policy is about how the government collects taxes and spends money to influence the economy. When the government spends more, it creates jobs and stimulates demand. When it increases taxes, it might slow down the economy.For example, during the pandemic, governments used fiscal policy by giving ayuda and funding healthcare. A good fiscal policy balances spending and saving to keep the economy strong and avoid too much debt.
