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The government's taxation and public expenditure policies together are called its:

AIndustrial policy
BFiscal policy
CMonetary policy
DTrade policy
Answer & Solution
Correct answer: B. Fiscal policy
1. Tax reforms belong to this area. 2. It covers what the state earns and spends. 3. That is fiscal policy. _Source: syllabus Economics, Indian Economic Development, Chapter 3, Liberalisation, Privatisation and Globalisation._
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