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The federal government can affect fiscal policy through its budgetary decisions, including changes in government spending and taxation. This typically occurs during the annual budget process, when Congress and the President negotiate and approve spending bills and tax legislation. Additionally, fiscal policy can be adjusted in response to economic conditions, such as during a recession or economic downturn, to stimulate growth or control inflation. Ultimately, these decisions are influenced by economic indicators and policy goals aimed at stabilizing the economy.

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3mo ago

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What are some functions of fiscal policy?

taxation and borrowing. deals with bother government expenditures and taxes that can affect the federal budget.


Fiscal policy is carried out primarily by?

federal government


What are the Measure that the federal government takes to stabilize the economy?

fiscal policy


Measures that the federal government takes to stabilize the economy are .?

fiscal policy


How does the government fiscal policy affect the economy?

When inflation increase


Actions taken by the federal government which influence economic activity are know as?

The economic actions taken by government are known as fiscal policy.


What has the author Marion Wrobel written?

Marion Wrobel has written: 'La taxe sur les produits et services' -- subject(s): Taxe sur les produits et services 'Fiscal policy in Canada' -- subject(s): Federal government, Federal-provincial fiscal relations, Fiscal policy 'Budgets 1995' -- subject(s): Budget, Federal-provincial fiscal relations, Fiscal policy, Provinces 'Federal revenues' -- subject(s): Revenue, Taxation 'Les budgets de 1995' 'Fiscal rules for the control of government (Background paper)' 'Federal-provincial fiscal relations in Canada' 'Budgets 1993' -- subject(s): Budget, Federal-provincial fiscal relations, Fiscal policy


Who determines th US Fiscal Policy?

US fiscal policy is determined by the federal government in office at the time of the policy.


If their is high inflation and the federal government spends less and raises taxes the government is utilizing what?

fiscal policy


Is fiscal policy when the government uses government spending and taxes to affect economic performance?

Yes. :)


What refers to the use of taxation and government expenditures to affect the economy?

Fiscal policy


How does the federal government affect monetary policy?

The federal government influences monetary policy primarily through its relationship with the Federal Reserve, the central bank of the United States. While the Federal Reserve operates independently, government fiscal policies, such as taxation and spending, can impact economic conditions and inflation, which the Fed considers when setting interest rates and controlling money supply. Additionally, government appointments to the Federal Reserve Board can shape the direction of monetary policy. Overall, the interaction between fiscal and monetary policies plays a crucial role in managing the economy.