Week 9 fiscal Policy

“Fiscal Policy"

Read CNBC's  Consumer confidence strengthens in July, beating expectations for a drop

· Who is in charge of making fiscal policy?

· What fiscal policy measure has a direct impact to the economy?

· If consumer confidence is low, which of the following will be the most effective fiscal policy?

·

a. An increase in government spending, or

b. An equal decrease in taxes?

Explain your reasoning.