ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The POTUS and Congress
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The Federal Reserve Bank & Fed Chairman (Jerome Powell)
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Either A or B
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None of the above
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Detailed explanation-1: -Congress has a big role to play in fiscal policy. It is one of the bodies that help shape the country’s spending and tax policies along with the executive branch.
Detailed explanation-2: -governments. To provide the basis for this assignment and give medium term guidance on fiscal matters, the Constitution provides for the formation of a Finance Commission (FC) every five years. Based on the report of the FC the central taxes are devolved to the state governments.
Detailed explanation-3: -Policy tools The two main tools of fiscal policy are taxes and spending. Taxes influence the economy by determining how much money the government has to spend in certain areas and how much money individuals should spend. For example, if the government is trying to spur consumer spending, it can decrease taxes.
Detailed explanation-4: -Fiscal policy is the means by which the government adjusts its budget balance through spending and revenue changes to influence broader economic conditions.
Detailed explanation-5: -There are three types of fiscal policy. They are neutral policy, expansionary policy, and contractionary policy.