Which of the following best describes how a president can influence the data shown in economic graphs?

• A. By directly setting prices for goods and services in all markets
• B. By determining the interest rates set by the central bank
• C. By implementing fiscal policies that affect government spending and taxation
• D. By controlling the decisions of private firms regarding production

Answer: (C)

Verified step by step guidance

1. Understand the role of a president in influencing economic data: The president typically does not have direct control over market prices or private firms' production decisions.
2. Recognize that interest rates are usually set by an independent central bank, not directly by the president, so the president cannot determine interest rates unilaterally.
3. Focus on fiscal policy, which includes government spending and taxation decisions that the president and legislative bodies can influence to affect economic activity.
4. Analyze how changes in fiscal policy can impact economic indicators shown in graphs, such as GDP growth, unemployment rates, and inflation.
5. Conclude that the president's influence on economic data is best described by their ability to implement fiscal policies affecting government spending and taxation.