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Economic Policy

Question 5 • IL-Economics

The government of Country A has lowered taxes to allow citizens to bring home more money in every paycheck. This is an example of [___].

Answer
A
fiscal policy
B
regulatory policy
C
monetary policy

Explanation

Fiscal policy involves government decisions about taxes and spending. Lowering taxes so citizens keep more of each paycheck is an example of fiscal policy, not monetary policy, which concerns the money supply and interest rates.

AI-written and checked against the verified answer.

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