Question and my answer:

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Q. Describe who are Economic Decision-makers and what tools is the government using to influence them during our current economic situation?

A. Households, businesses, government agencies, and the rest of the world are all in the position to make economic decisions. Economic theory suggests that people, and therefore households, aim to maximize their utility. The government can decide to regulate certain aspects of this economic activity to generate economic growth or prevent unfavorable economic conditions in the future. A strong economy requires the federal government to take two critical actions: fiscal policy and monetary policy. Although outside events can affect economic activity, governments can also use economic means to introduce changes. The Fed adjusts the interest rate that banks charge for borrowing from each other. The Fed may lower interest rates as a way of keeping borrowing cheap, ensuring that credit is readily available, and boosting consumer confidence. Economic intervention may come in various forms, including direct economic interventions, tax policy, and legislation; government responses to economic conditions usually require multiple strategies to be employed simultaneously.