The correct option is B. A tax on farm products.
A tax on farm products is the best example of a fiscal policy.
What is the meaning of fiscal policy?
Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.
What are examples of fiscal policy?
The two major examples of expansionary fiscal policy are tax cuts and increased government spending. Both of these policies are intended to increase aggregate demand while contributing to deficits or drawing down budget surpluses.
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