(A) An agreement on international trade
(B) A treaty that ends a war
(C) ** A reduction in the federal income tax
(D) A cash loan to another country
EXPLANATIONS BELOW
Concept note-1: -The correct answer is Interest Rate. Interest Rate does not form part of the fiscal policy of a country. Fiscal policy is the use of government revenue collection (mainly taxes but also non-tax revenues such as divestment, loans) and expenditure (spending) to influence the economy.
Concept note-2: -The two major examples of expansionary fiscal policy are tax cuts and increased government spending.
Concept note-3: -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.
Concept note-4: -Expenses that Qualify for Tax Deductions under Section 80C Premium payments made towards Life insurance policies. Tuition fees for children’s education. Repayment of principal amount on home loan. Registration fees and stamp duty for house property.