Question

Who or what creates fiscal policy?

What are two (2) tools of fiscal policy?

write as an 11th gradeer would thank you. not too fomal or informal. Keep it short as possible.

Answer 1

Fiscal policy is made by the government — in the U.S. that’s mainly Congress and the President (and the Treasury/finance department helps carry it out). Two tools of fiscal policy are government spending (like building roads or funding programs) and taxes (raising or cutting taxes to slow down or speed up the economy).