Question

During the decade-long war in Iraq, the U.S. government spent two trillion dollars for military operations and reconstruction in that country. These costs are part of the U.S. government’s

A. Fiscal policy
B. Monetary policy
C. Trade policy

Answer 1

The correct option is A.
Fiscal policy refers to those government policies which are targeted at managing the economy by controlling tax, spending and federal budget.
Military spending are part of the federal budget that are prepared in US every year.