Which of the following is primarily responsible for controlling fiscal policy in the United States?

• A. The Supreme Court
• B. The U.S. Congress and the President
• C. State governments
• D. The Federal Reserve

Answer: (B)

Verified step by step guidance

1. Step 1: Understand what fiscal policy entails. Fiscal policy involves government decisions about taxation and spending to influence the economy.
2. Step 2: Identify the institutions involved in fiscal policy. Fiscal policy is typically controlled by the legislative and executive branches of government because they have the power to create laws about taxes and government spending.
3. Step 3: Recognize the roles of the options given: The Supreme Court interprets laws but does not set fiscal policy; State governments manage their own budgets but do not control national fiscal policy; The Federal Reserve controls monetary policy, not fiscal policy.
4. Step 4: Conclude that the U.S. Congress (legislative branch) and the President (executive branch) are responsible for setting and implementing fiscal policy through passing budgets, taxation laws, and spending programs.
5. Step 5: Therefore, the correct answer is that fiscal policy in the United States is primarily controlled by the U.S. Congress and the President.