What is the major instrument through which any government sets its overall economic policy each year?

Question

Quizplus · Accepted Answer

The federal budget is the major instrument through which any government sets its overall economic policy each year. It outlines how the government plans to spend its money and sets the priorities for the allocation of funds to various programs and initiatives. The budget also reflects the government's economic policies and goals, such as promoting economic growth, reducing unemployment, and controlling inflation. The Federal Reserve Board and monetary policy are important tools for managing the economy, but they are not the main instruments for setting overall economic policy. The Economic Stimulus Program may be used in times of economic crisis, but it is not a regular tool for managing the economy.

What Is the Major Instrument Through Which Any Government Sets