As a member of Congress, what changes would you suggest to fiscal policy to balance the budget? Explain at least two ways you would use the tools of fiscal policy to balance the budget by recommending an "increase" or "decrease" to each tool in your explanation.

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Social Studies

Cunningham

29 March, 23:36

As a member of Congress, what changes would you suggest to fiscal policy to balance the budget? Explain at least two ways you would use the tools of fiscal policy to balance the budget by recommending an "increase" or "decrease" to each tool in your explanation.

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Dayanara Schmidt · Answer 1

You could raise taxes to create more income (assuming your budget is in deficit).

You could lower interest rates which should convince businesses to invest more and borrow more which would stimulate the economy and thus create a larger tax base.