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Question
fiscal policy quick check
how does the federal governments fiscal policy affect the u.s. economy?
(1 point)
the house and senate pass new laws and regulations that can make
changes to wealth distribution.
the president issues executive orders to influence changes to consumer and
business spending.
members of the federal government consult with banks to change interest
rates and availability of lending.
the federal government implements tax and spending measures that affect
employment, economic growth, and inflation.
Fiscal policy refers to government use of taxation and spending to influence the economy. The correct option directly describes these core tools (tax and spending) and their impacts (employment, growth, inflation). Other options involve legislative/executive actions unrelated to fiscal policy tools or monetary policy (interest rates, a separate domain).
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The federal government implements tax and spending measures that affect employment, economic growth, and inflation.