Question

1，Fiscal policy is​ ______.

A.

the set of tools used by the Federal Reserve to achieve macroeconomic objectives

B.

successful only if the government has a budget surplus

C.

the use of the federal budget to achieve macroeconomic objectives

D.

successful only if the government has a balanced budget

2，The​ ______ proposes a budget to​ ______.

  

A.

​President; Congress each February

B.

​President; Congress each September

C.

​Congress; the President each February

D.

​Congress; the President each September

3，The​ ______ passes the budget acts in​ ______.

A.

​Congress; September

B.

​President; January

C.

​President; September

D.

​Congress; January

Answer 1

1. Option C

• Fiscal policy is the use of the federal budget to achieve macroeconomic objectives.
• Unlike monetary policy which influences the Economy using money supply and the interest rates, fiscal policy does the same but uses government spendings and taxes.
• Fiscal policy can either be expansionary or contractionary, while the expansionary fiscal policy is used to promote Economic growth, the contractionary fiscal policy is used for slowing down the Economy.

2. Option A

• The Budget proposed by the president to a Congress consists of Revenue, debts, spendings etc.
• This proposal for the Annual budget is send to the Congress in every upcoming year usually at the start ( Monday) of February.

3. Option A

• The Congress passes the budget acts in September.
• After the president's proposal of the budget to the congrCongress , the Congress then passes various budget acts that are used to conduct several budget processes and to create the federal budget.