A negative externality that might arise as a result of four new major highways being added from north to south is Rise in air pollution.
<h3>What is a negative externality?</h3>
A negative externality refers to an adverse effect that a third party experiences even though they were not involved in the initial transaction that produced the effect.
Air pollution is a negative externality because the people around those highways will be affected by it even if they do not own any of the cars that will ply the four new major highways.
In conclusion, option C is correct.
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The third alternative is correct (C).
Fiscal Policy can be practiced in two ways: by increasing / decreasing public spending or increasing / decreasing taxes.
Increasing public spending and lowering taxes are expansionary fiscal policies, that is, aimed at stimulating the economy. On the contrary, reducing government spending and raising taxes are contractionary fiscal policies that seek to cool the economy.
In this way, the increase of the Income Tax is a fiscal policy, contractionist, that aims to discourage the economy.
The other alternatives represent Monetary Policy instruments.
Road building is the correct answer
