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

Responses

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

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.

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 President issues executive orders to influence changes to consumer and business spending.
whats the right answer

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

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

The correct answer is "The federal government implements tax and spending measures that affect employment, economic growth, and inflation." When it comes to fiscal policy, the federal government can use its power to implement changes in taxation and spending. By adjusting tax rates, the government can influence the amount of money individuals and businesses have available for spending and saving. Similarly, through its spending decisions, the government can impact different sectors of the economy and stimulate growth. These measures can have a direct impact on employment levels, economic growth, and inflation rates. The other options mentioned in the responses, such as consulting with banks or passing laws related to wealth distribution, are not direct aspects of fiscal policy, although they can indirectly impact the economy.