What is the term for governmental measures used by the President and Congress to influence fiscal policy and spending?

What is the term for governmental measures used by the President and Congress to influence fiscal policy and spending?

• A. Monetary Policy
• B. Fiscal Strategy
• C. Economic Policy
• D. Economic Stimulus

Answer: (B)

The term used to describe governmental measures employed by the President and Congress to influence fiscal policy and spending is fiscal strategy. Fiscal policy encompasses decisions regarding government spending and taxation, which are key tools used to manage the economy. When the government increases spending or adjusts tax rates, these actions are part of a broader fiscal strategy designed to achieve economic goals, maintain stability, or encourage growth. Monetary policy, on the other hand, refers specifically to the actions taken by a nation's central bank to control the money supply and interest rates, rather than measures taken by Congress or the President. Economic policy is a broad term that may encompass both fiscal policy and monetary policy but does not specifically refer to the measures used to influence fiscal policy. Economic stimulus is more specific and generally refers to tactics aimed at boosting economic activity during periods of downturn, often linked to fiscal policy but not encompassing all governmental measures relating to spending and taxation broadly.

The term used to describe governmental measures employed by the President and Congress to influence fiscal policy and spending is fiscal strategy. Fiscal policy encompasses decisions regarding government spending and taxation, which are key tools used to manage the economy. When the government increases spending or adjusts tax rates, these actions are part of a broader fiscal strategy designed to achieve economic goals, maintain stability, or encourage growth.

Monetary policy, on the other hand, refers specifically to the actions taken by a nation's central bank to control the money supply and interest rates, rather than measures taken by Congress or the President. Economic policy is a broad term that may encompass both fiscal policy and monetary policy but does not specifically refer to the measures used to influence fiscal policy. Economic stimulus is more specific and generally refers to tactics aimed at boosting economic activity during periods of downturn, often linked to fiscal policy but not encompassing all governmental measures relating to spending and taxation broadly.