How does the federal government's fiscal policy affect the U.S. economy?(1 point)

Responses

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 federal government implements tax and spending measures that affect employment, economic growth, and inflation.
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 House and Senate pass new laws and regulations that can make changes to wealth distribution.

Members of the federal government consult with banks to change interest rates and availability of lending.

1 answer

The correct response is:

The federal government implements tax and spending measures that affect employment, economic growth, and inflation.

This statement accurately reflects how fiscal policy, which involves government taxation and spending decisions, can influence key economic indicators and overall economic health.