Correct Answer: Public finance

Solution : The correct answer is (b) Public finance.

Public finance is a branch of economics that focuses on the role of government in the economy, particularly in terms of taxation, public spending, and economic policies. It analyzes how government actions, such as changes in taxes, impact various aspects of the economy, including consumer behavior. The study of how changes in taxes influence consumer spending falls within the realm of public finance as it examines the effects of fiscal policies on individual and aggregate economic outcomes. It explores topics such as tax incidence, tax policy design, and the economic consequences of taxation.