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Generally speaking the fiscal policies of the US Federal government are related to the monetary policies of the US Federal Reserve System. With that said, US fiscal policies of the Federal government can affect the economic situation of the US. The Federal government can do the following to influence the US economy, all of which are meant to improve the economy, however, that may not be the intended result. Here are some but not all examples of how the economy of the US can be affected by the Federal government:

* Increase or decrease income taxes on personal and corporate income;

* Increase or decrease gasoline taxes;

* Increase or decrease tariffs;

* Increase or decrease capital gains taxes ( part of income taxation );

* Increase or decrease social security payments;

* increase or decrease certain Medicare prices (costs )

* increase or decrease Federal employment policies;

* increase or decrease social spending in terms of food stamps as an example; and

* Increase or maintain current levels of the national debt ceiling.

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Krystal Bernier

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Q: How can federal government affect fiscal policy?
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Related questions

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


How does the government fiscal policy affect the economy?

When inflation increase


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

fiscal policy


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

fiscal policy


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


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

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.


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


Does Pakistan follow expansionary fiscal policy?

Fiscal policy is the manipulation of taxation and government spending by the government to affect the economy . Expansionary fiscal policy is when the government what to increase aggregate demand by decrease taxation.Pakistan does not use expantionary fiscal policy because Pakistan have highly economic growth and macroeconomic stability but also some poverty reduction(increase in standard of living)