The correct answer is: B. Public revenue and expenditure
Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are taxation and government spending.
Taxation is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental authority, typically to fund government spending and various public expenditures.
Government spending is the purchase of goods and services by a government. It is usually included in the gross domestic product (GDP) as part of the final consumption expenditure.
Export and import are the two main components of international trade. Export is the sale of goods and services by a country to other countries.
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