4.05 economics.docx - Melanie Cruz Beltran Economics 04.05 Uncle Sam's Toolbox Part 1 1 Fiscal Policy is how the government earns and spends its money

4.05 economics.docx - Melanie Cruz Beltran Economics 04.05...

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Melanie Cruz Beltran 3/15/20Economics04.05 Uncle Sam's ToolboxPart 1:1) Fiscal Policy is how the government earns and spends its money. The tools for fiscal policy are taxes and spending. The goal for fiscal policy is to make business produce more that way you can create more demands in the economy 2) The difference between fiscal policy and monetary policy is that fiscal policy is mainly controlled by the president and U.S Congress and deals with taxes but monetary policy are actions and communications that manages money supply 3) I think we should create a law mandating a balanced federal budget because it would be good for the government so that way it won’t overspend and can save up for an extra budget and see the difference of our federal budgetPart 2:Scenario 1: 4) This does create a surplus because even though the government is spending money, it’s bringing more money through the form of taxation rather than spending5) I think I would make an increase on taxes, but I would decrease the amount
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