The correct answer is option 3, which states that trade policy is not a component of fiscal policy.

Fiscal policy refers to the government`s use of taxation, public spending, and borrowing to manage the economy. It is aimed at influencing the overall level of economic activity, output, and employment, as well as promoting economic stability.

Option 1, taxation policy, is indeed a component of fiscal policy. Taxation is a crucial tool that governments use to collect revenue for public spending and to influence economic behavior. By adjusting tax rates and policies, governments can impact individuals` and businesses` spending and saving behavior.

Option 2, public debt policy, is also a component of fiscal policy. This involves the government borrowing funds from different sources to finance its expenditures. Governments often issue bonds and other debt instruments to raise money, which affects interest rates and overall economic conditions.

Option 4, public expenditure policy, is another component of fiscal policy. Governments use public spending to promote economic growth, invest in infrastructure, provide public goods and services, and support specific sectors of the economy.

Alert - correct answer should be: None. All of the options (1, 2, 3, and 4) are components of fiscal policy. Trade policy, however, falls under