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: -Fiscal policy refers to the tax and spending policies of the federal government. Fiscal policy decisions are determined by the Congress and the Administration; the Fed plays no role in determining fiscal policy.
Detailed explanation-3: -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-4: -Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.
Detailed explanation-5: -There are three types of fiscal policy. They are neutral policy, expansionary policy, and contractionary policy.