Fiscal and Structure of Fed Flashcard practice

Front

Taxing & spending to help the economy grow is referred to as

Back

expansionary policy

Front

Taxing & spending to slow the economy is referred to as

Back

contractionary policy

Front

The federal government's overall approach to spending and taxes is called

Back

Fiscal Policy

Front

An example of expansionary fiscal policy would be: cutting taxes., cutting government spending., cutting production of consumer goods., cutting prices of consumer goods.

Back

cutting taxes.

Front

If the unemployment rate is rising and GDP is falling, what fiscal policy action should the federal government MOST likely follow? Options: decreasing taxes, decreasing spending, decreasing the money supply, decreasing the reserve requirement.

Back

decreasing taxes.

Front

If an economy experiences a dramatic rise in prices, which fiscal policy action could be taken? Options: Selling securities on the open market, Raising interest rates, Reducing government spending, Raising reserve requirements

Back

Reducing government spending

Front

The Federal government is concerned that economic growth is too high, that it is unsustainable, and that inflation is resulting. Which fiscal policy might be enacted to reduce inflation? Options: Increasing taxation, Open market sales, decreasing taxation, Increasing government spending

Back

Increasing taxation

Front

Which of the following is not a tool of fiscal policy? Taxing, Spending, Interest Rates, All of these options are tools of fiscal policy.

Back

Interest Rates

Front

Which of the following is defined as "government spending that is funded by money the government borrowed"? Deflation, Inflation, National Debt

Back

Deficit Spending

Front

Which of the following tends to grow as a direct result of deficit spending?
Deflation, Inflation, Withholdings, National Debt

Back

National Debt