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How does the federal government's fiscal policy affect the U.S. economy?(1 point)
The federal government implements tax and spending measures that affect employment, economic growth, and inflation.
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.
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The first option. Fiscal policy uses taxation and government spending to influence employment, economic growth, and inflation.
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