Question

Which determinant- that impacts the aggregate market- would result in the use of fiscal policy? A) expectations B) money supply C) interest rates D) federal deficit

Answer 1

Answer:

The determinant in this case would be option D, i.e. Federal deficit.

According to this, "Federal deficit is the determinant which that impacts the aggregate market and would result in the use of fiscal policy".

Explanation:

This is so because fiscal policy works around factors like governmental spending and taxation.

In such a situation, of federal deficit, the budgetary situation would lead to expenses getting incurred by the government above the tax revenues. Thus this suits best.

Answer 2

The federal deficit impacts the aggregate market that would result in the use of the fiscal policy.

Option: D

Explanation:

• The fiscal policy is used for curbing the economy. The government can make use of the fiscal policy by increasing the taxes.  

• This situation arises due to the federal deficit where the expenses that are incurred by the government are more than the revenue collected as taxes.  

• In this situation of federal deficit within the budget would lead to expenses getting incurred by the government above the tax revenues. They then have to make use of the fiscal policy.

Learn more about federal deficit

Difference between public deficit and public debt

https://brainly.in/question/3453613