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Fiscal policy refers to the ________using_________

to affect the economy.

Congress and the president, taxes and spending
Forte

The Federal Reserve, taxes and spending

The Federal Reserve, interest rates

Congress and the president, interest rates

The Federal Reserve, the money supply

1 Answer

5 votes

Answer:

Congress and the president, taxes and spending.

Step-by-step explanation:

Fiscal policy refers to the Congress and the president using taxes and spending to affect the economy.

Fiscal policy in economics refers to the use of government (Congress and the president) expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

Generally, a fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

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