Question

Which best describes a way in which the government might respond to rising threats to national security through fiscal policy?

sending troops overseas
passing an excise tax on gasoline
appointing a new Secretary of Homeland Security
increasing military spending

Answer 1

Increasing military spending.

Explanation: Fiscal policy involves government taxing and spending decisions. Raising military spending is a direct fiscal response to increased national security threats (whereas appointing officials or sending troops are actions, not fiscal measures; an excise tax is fiscal but less directly a security response).