Answer: an alternative to this answer is spending tax revenues.
Explanation:
The economic activity that's part of the government's fiscal policy is lowering tax rates.
Fiscal coverage refers to using government spending and tax rules to steer financial conditions, in particular macroeconomic conditions, which include a mixture of items and services, employment, inflation, and financial growth.
Fiscal coverage is regularly contrasted with economic coverage, which is enacted via the means of primary bankers and no longer elected government officials.
To illustrate how the authorities can use economic coverage to have an effect on the financial system, take into account a financial system that is experiencing a recession.
The authorities would possibly trouble tax stimulus rebates to boost the mixture's financial growth.
Expansionary economic coverage is generally characterised by means of deficit spending, whereby government expenses exceed receipts from taxes and different sources.
Therefore, from the above assertions, it's clear that choice D, lowering tax rates, is the proper answer.
Learn more about Fiscal policy, refer to:
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