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What fiscal policy measure has a direct impact to the

Problem

Read CNBC's Consumer confidence strengthens in July, beating expectations for a drop

• Who is in charge of making fiscal policy?
• What fiscal policy measure has a direct impact to the economy?
• If consumer confidence is low, which of the following will be the most effective fiscal policy?

1. An increase in government spending, or
2. An equal decrease in taxes?

Explain your reasoning.

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