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Economic fiscal policy is set by government to decide the level of taxation, borrowing, and spending...

Economic fiscal policy is

set by government to decide the level of taxation, borrowing, and spending to influence the business cycle.

none of these choices.

set by the central bank  to control the intake and output of money through the government which influences the business cycle.

set by government to control the intake and output of money through the government.

set by Congress  to decide the level of taxation and spending to influence the business cycle.
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Answer #1

Economic fiscal policy is an important tool using which there can be significant influence on the business cycle. Fiscal policies are more effective typically during a recession. It decides the level of taxation and the government spending and thus can directly influence variables such as consumption, investment, and output. Option d) is correct, that is, set by Congress  to decide the level of taxation and spending to influence the business cycle.

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