Q:

Who controls fiscal policy?

A:

Quick Answer

In the United States, fiscal policy is controlled by the executive and legislative branches of the government. Congress and the president's administration have the final say regarding fiscal policy.

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Who controls fiscal policy?
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Full Answer

Federal policy is a blanket term that is used to refer to the tax and expenditure of the federal government. Taxes and spending are the main tools that policy makers use to manipulate demand in the economy. These tools have an impact on the fiscal position of the government as they cause the budget deficit to go up. Therefore, the government will be required to borrow money to cover the deficit.

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Related Questions

  • Q:

    What are some examples of fiscal policy?

    A:

    Examples of fiscal policy include changing tax rates and public spending to curb inflation at a macroeconomic level. Other examples include extending tax cuts to counteract a cut in government spending to avoid causing an economic recession.

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  • Q:

    Which party controls the House of Representatives?

    A:

    As of March 26, 2014, the U.S. House of Representatives is controlled by a Republican majority. The Republicans control a total of 233 seats.

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  • Q:

    Who controls monetary policy?

    A:

    In the United States of America, the Federal Reserve controls monetary policy. Stable employment, prices and long-term interest rates are the goals of monetary policy. The Federal Reserve uses monetary policy to avoid inflation and high interest rates by regulating the supply of money and credit available in the country.

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  • Q:

    What does the executive branch do?

    A:

    The executive branch of the United States, headed by the president, has the primary duty of administering and implementing federal laws. In addition to the president, who acts as commander in chief, the Vice president also has a prominent role in directing the activities of the executive branch. This branch includes numerous federal agencies that enforce laws and regulations in different areas, including finances, the environment and security.

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