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Question

is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.

A
Monetary policy
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B
Fiscal policy
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C
Financial policy
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D
Bank rate policy
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Solution

The correct option is B Fiscal policy
Fiscal policies are the policies through which the government adjusts its spending levels and tax rates. As a result, fiscal policies impact public revenues, public expenditures, and public debt. The term 'monetary policy' refers to what a nation's central bank does to influence a country's economy.

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