Answer

C

Explanation

Fiscal policy is a strategy used by governments to manage the economy by adjusting spending levels and tax rates. It is used to monitor and influence a nation's economy, and it is the means by which the government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It does not directly involve the printing of money; that is the role of monetary policy, which is typically managed by a country's central bank. Fiscal policy can influence the level of unemployment indirectly by affecting the overall economic activity, but it does not set the correct level of unemployment. Punishing companies for environmental violations is an environmental policy issue, not a fiscal policy one.Let's analyze the answer choices:A: Allowing more money to be printed is not a function of fiscal policy; it is a function of monetary policy, which is typically managed by a country's central bank.B: Punishing companies for environmental violations is related to environmental policy, not fiscal policy.C: Collecting tax money to save during strong economic periods is a practice of fiscal policy known as countercyclical fiscal policy. During times of economic growth, the government may choose to collect more in taxes to prevent the economy from overheating and to avoid inflation.D: Deciding on the correct level of unemployment is not a direct function of fiscal policy. However, by adjusting tax levels and government spending, fiscal policy can influence overall demand, output, and the level of economic activity, which in turn can influence the level of unemployment.