Though the responsibility for making fiscal policy lies with ________, the administration of fiscal policy occurs primarily in the ________.
A)the president; Federal Reserve Board
B)the president; Treasury Department
C)Congress; Treasury Department
D)Congress; Department of Commerce

Question

Quizplus · Accepted Answer

According to the US Constitution, the responsibility for making fiscal policy lies with Congress, which is responsible for establishing federal spending and taxing policies. In practice, however, the administration of fiscal policy is carried out primarily by the Treasury Department, which is responsible for implementing and enforcing tax laws, collecting revenue, and administering government spending programs. The Federal Reserve Board, on the other hand, is responsible for monetary policy, which involves controlling the money supply and interest rates to promote economic growth and stability. The president has some influence over fiscal policy through the annual budget proposal, but ultimately Congress holds the power of the purse.

Though the Responsibility for Making Fiscal Policy Lies with ________