Fiscal policy is mainly the responsibility of which entity?

Fiscal policy is mainly the responsibility of which entity?

• A. Federal Reserve
• B. U.S. Government
• C. Commercial Banks
• D. State Governments

Answer: (B)

Fiscal policy refers to the government's use of spending and taxation to influence the economy. It encompasses decisions related to government budgets, tax policies, and overall public expenditure, all aimed at managing economic growth, inflation, and unemployment levels. The primary entity responsible for crafting and implementing fiscal policy is the U.S. Government, particularly through the legislative and executive branches. Legislators propose and vote on budgetary measures and tax laws, while the executive branch, led by the President, implements these policies. Fiscal policy decisions are made with the intention of promoting economic stability and growth, reinforcing the foundational role of the U.S. Government in steering the economy through effective fiscal measures.

Fiscal policy refers to the government's use of spending and taxation to influence the economy. It encompasses decisions related to government budgets, tax policies, and overall public expenditure, all aimed at managing economic growth, inflation, and unemployment levels. The primary entity responsible for crafting and implementing fiscal policy is the U.S. Government, particularly through the legislative and executive branches.

Legislators propose and vote on budgetary measures and tax laws, while the executive branch, led by the President, implements these policies. Fiscal policy decisions are made with the intention of promoting economic stability and growth, reinforcing the foundational role of the U.S. Government in steering the economy through effective fiscal measures.