1 of 51 of 5 Items
Question
How does the federal government's fiscal policy affect the U.S. economy?(1 point)
Responses
Members of the federal government consult with banks to change interest rates and availability of lending.
Members of the federal government consult with banks to change interest rates and availability of lending.
The President issues executive orders to influence changes to consumer and business spending.
The President issues executive orders to influence changes to consumer and business spending.
The House and Senate pass new laws and regulations that can make changes to wealth distribution.
The House and Senate pass new laws and regulations that can make changes to wealth distribution.
The federal government implements tax and spending measures that affect employment, economic growth, and inflation.
1 answer
The correct response is:
The federal government implements tax and spending measures that affect employment, economic growth, and inflation.
This option accurately describes how fiscal policy operates by influencing the economy through changes in taxation and government spending, which can impact various economic factors like employment levels, growth rates, and inflation.
