Fiscal policy is most closely associated with which entity?

Fiscal policy refers to the government's use of spending and taxation to influence the economy. It is primarily associated with government entities because they are responsible for creating and implementing fiscal policies. This can involve decisions about how much money to spend on public services, infrastructure, education, and other areas, as well as setting tax rates and collecting taxes. By adjusting these factors, governments can stimulate economic growth or cool down an overheating economy.

While the Federal Reserve plays a significant role in monetary policy, which involves the management of money supply and interest rates, fiscal policy specifically pertains to the government's budgetary decisions. Private corporations and non-profit organizations do not have the authority to enact fiscal policy, as their focus is on profits and missions, respectively. Hence, government entities are the correct answer as they are the primary actors in implementing fiscal policy.