In 2009, Congress and the president enacted “cash for clunkers” legislation that paid up to $4,500 to people buying new cars if they traded in an older, low-gas-mileage car. Was this legislation an...

In 2009, Congress and the president enacted “cash for

clunkers” legislation that paid up to $4,500 to people

buying new cars if they traded in an older, low-gas-mileage car. Was this legislation an example of fiscal policy?

Does your answer depend on what goals Congress and the

president had in mind when they enacted the legislation?

Source: Justin Lahart, “Trade-in Program Tunes up Economic

Engine,” Wall Street Journal, August 4, 2009.