Fiscal & Monetary Policy

Multiple Choice

Identify whether the policy listed is related to taxes or spending:

The government decides to begin a massive effort to rebuild the nation's highways.

• Spending Policy

• Tax Policy

Multiple Choice

Identify whether the policy listed is related to taxes or spending:

The government has increased revenues by charging extra fees for the consumption of gasoline.

• Spending Policy

• Tax Policy

Multiple Select

The government can try to stimulate or encourage economic growth by _______________ and/or _______________

• Decrease Government Spending

• Lowering Taxes

• Increasing Government Spending

• Raising Taxes

Multiple Select

The government can try to slow economic growth by

_______________ and/or_______________

• Decreasing Government Spending

• Lowering Taxes

• Increasing Government Spending

• Raising Taxes

Multiple Choice

What is a primary Responsibility of the Federal Reserve System?

• to make loans available to individuals experiencing financial hardships

• to ensure the federal government maintains a balanced budget

• to moderate the impact of expansions and contractions in the economy

• to ensure that consumers get the best prices on goods in the marketplace

Multiple Choice

What is one way the Federal Reserve System Regulates economic Activity?

• Regulating the amount of money in circulation

• Regulating production of consumer goods

• Regulating tariff rates on foreign imports

• Regulating spending by the federal government

Multiple Select

Identify which policies the Federal Reserve uses to encourage economic growth.

• Lowering Discount Rate

  (The rate of interest the Federal Reserve charges banks on loans)

• Raising Discount Rate

  (The rate of interest the Federal Reserve charges banks on loans)

• Lowering the Reserve Requirement

  (The money held by the Federal Reserve)

• Raising the Reserve Requirement

  (The money held by the Federal Reserve)

Multiple Select

Identify which policies the Federal Reserve uses to slow economic growth.

• Lowering Discount Rate

  (The rate of interest the Federal Reserve charges banks on loans)

• Raising Discount Rate

  (The rate of interest the Federal Reserve charges banks on loans)

• Lowering the Reserve Requirement

  (The money held by the Federal Reserve)

• Raising the Reserve Requirement

  (The money held by the Federal Reserve)