ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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executive order from the President.
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a process involving different branches of government.
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central planners working for Congress.
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the actions of consumers and producers in the market.
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Detailed explanation-1: -In the United States, fiscal policy is directed by both the executive and legislative branches. In the executive branch, the two most influential offices in this regard belong to the President and the Secretary of the Treasury, although contemporary presidents often rely on a Council of Economic Advisers as well.
Detailed explanation-2: -In the executive branch, the President and the Secretary of the Treasury, often with economic advisers’ counsel, direct fiscal policies. In the legislative branch, the U.S. Congress passes laws and appropriates spending for any fiscal policy measures.
Detailed explanation-3: -Fiscal policy is the application of taxation and government spending to influence economic performance. The main aim of adopting fiscal policy instruments is to promote sustainable growth in the economy and reduce the poverty levels within the community.
Detailed explanation-4: -The Federal Government (the president and congress) is in charge of Fiscal Policy.
Detailed explanation-5: -Fiscal policy can be distinguished from monetary policy, in that fiscal policy deals with taxation and government spending and is often administered by a government department; while monetary policy deals with the money supply, interest rates and is often administered by a country’s central bank.