The correct answer is: d) All of the above
Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.
Taxation is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a government. Taxes are levied to fund government activities and various public services.
Government spending is the total amount of money that a government spends on goods and services. It includes spending on things like education, healthcare, infrastructure, and the military.
Public borrowing is the act of a government taking out loans from the public or from other governments. This is done to finance government spending that exceeds tax revenue.
All of these are key components of fiscal policy because they can be used to influence the economy. For example, a government can increase taxes to reduce the amount of money that people have to spend, which can help to control inflation. Or, a government can increase spending on infrastructure to create jobs and stimulate the economy.
Fiscal policy is a powerful tool that can be used to achieve a variety of economic goals. However, it is important to use fiscal policy carefully, as it can also have unintended consequences. For example, if a government increases taxes too much, it can discourage investment and economic growth.