Interest rates are to monetary policy as tax rates are to... a) company policy. b) fiscal policy. c) inflation policy. d) revenue policy.

Tax rates play a crucial role in fiscal policy, which involves government spending and tax decisions to influence the economy. Just as monetary policy aims to regulate the money supply and interest rates, fiscal policy uses tax rates to control economic activity, manage inflation, and promote growth. In practical terms, adjusting tax rates can stimulate or cool down the economy. Lowering taxes might encourage consumer spending, while increasing them could help curb inflation. This dynamic creates a balancing act for policymakers to maintain economic stability and growth.