Prices are determined in a free market economy through the interactions of supply and demand in the Marketplace <span>where demand is the quantity of a product that buyers are willing to purchase according to a given price and supply is the amount of a product that sellers can vendor to customers at a given price.</span>
The answer would be : Fiscal Policy
Federal budget is used to fund Government activities such us : Welfare funding, maintaining public properties, army's funding , etc. Most of federal budget come from the taxes.