Correct Answer: Option D

Explanation

Fiscal policy refers to the use of government spending and taxation to influence the overall economy. It involves the use of taxes and government expenditures to stabilize the economy, promote economic growth, control inflation, and manage other macroeconomic objectives. Fiscal policy can be expansionary (increasing government spending and/or reducing taxes) or contractionary (reducing government spending and/or increasing taxes) based on the economic conditions and policy goals.

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