Question

Which best explains a way which the government might respond to rising threats to national security through fiscal policy? A) sending troops overseas
B) passing an excise tax on gasoline
C)appointing a new secretary of homeland security
D) increasing military spending

Answer 1

Correct answer choice is:

D) Increasing military spending.

Answer 2

The correct answer is the following: option D. A way in which the government might respond to rising threats to national security through fiscal policy would be by increasing the military spending. The fiscal policy of the country is the use of government spending and different tax policies, to influence macroeconomic conditions. In the case of a threat to the national security of the country, the government can decide to increase military spending, so that there would be more resources avaiable to combat those threats.