Econ Fiscal and Monetary Policy

Which of the following is the definition of fiscal policy?

• •the use of government spending, transfer payments, and taxes to stabilize economic fluctuations.
• •involves the use of the money supply and interest rate to regulate macroeconomic fluctuations.

Which of the following is the definition of monetary policy?

• •the use of government spending, transfer payments, and taxes to stabilize economic fluctuations.
• •involves the use of the money supply and interest rate to regulate macroeconomic fluctuations.

Which of the following is NOT true about fiscal policy?

• •the government can choose to increase it spending for example and thus cause the aggregate demand curve to shift back to the right in the event of a negative demand shock.
• •the government can use items within its budget to stimulate the economy.
• The government does not have the authority to increase or decrease spending to help the economy.

Which of the following is the definition for federal budget?

• an annual statement of outlays and receipts of the U.S. government together with the laws and regulations that approve and support them
• •the sum of money owed by the federal government at a point in time.
• the fraction of every dollar of disposable income that is saved 
• the fraction of every additional dollar of disposable income that is consumed 

Which of the following is the definition for government debt?

• an annual statement of outlays and receipts of the U.S. government together with the laws and regulations that approve and support them
• •the sum of money owed by the federal government at a point in time.
• the fraction of every dollar of disposable income that is saved 
• the fraction of every additional dollar of disposable income that is consumed 

Which of the following is the definition for marginal propensity to save (MPS)?

• an annual statement of outlays and receipts of the U.S. government together with the laws and regulations that approve and support them
• •the sum of money owed by the federal government at a point in time.
• the fraction of every dollar of disposable income that is saved 
• the fraction of every additional dollar of disposable income that is consumed 

Which of the following is the definition for marginal propensity to consume (MPC)?

• an annual statement of outlays and receipts of the U.S. government together with the laws and regulations that approve and support them
• •the sum of money owed by the federal government at a point in time.
• the fraction of every dollar of disposable income that is saved 
• the fraction of every additional dollar of disposable income that is consumed 

Which of the following is not a source of government receipts or revenue?

• personal income tax
• social security tax
• coporate income and indirect taxes
• political donations

Which of the following is not considered government spending or outlays?

• transfer payments
• expenditures on goods and services
• debt interest
• donations to organizations

The government is considered balances when the receipts - outlays is equal.  If the balance is positive, it is a budget _______

• surplus
• defict