The example of a fiscal policy in the given options is "raising taxes in order to cover a budget deficit." Fiscal policy refers to the actions taken by a government to manage the overall state of the economy. It involves the use of government spending and taxation to influence economic activity. By raising taxes, the government aims to generate additional revenue to offset a budget deficit, which occurs when the government's expenditures exceed its income. This is a form of fiscal policy because it directly affects the government's revenue and expenditure patterns, which in turn can impact the economy as a whole. To determine the correct answer among the given options, you can analyze each statement and identify which one aligns with the concept of fiscal policy.
