Which groups must be in agreement to implement fiscal policy?
A) the Senate, the House of Representatives, and the president
B) the legislative branch, the president, and the judicial branch
C) the legislative branch, the president, and the Federal Reserve
D) the Senate, the House of Representatives, and the Federal Reserve

Question

Quizplus · Accepted Answer

Fiscal policy involves changes to government spending and taxation, and therefore requires approval from the legislative branch (the Senate and the House of Representatives) to pass laws related to these changes. The president also plays a key role in implementing fiscal policy because they must sign any laws passed by Congress. Therefore, both the legislative and executive branches must be in agreement for fiscal policy to be implemented. The Federal Reserve is not directly involved in fiscal policy, but rather monetary policy.

Which Groups Must Be in Agreement to Implement Fiscal Policy