Monetary and Fiscal Policy

Which of the following are responsible for making fiscal policy decision? 

• The President and Congress
• The Federal Reserve System
• The National Council of Economic Advisors
• The commerce Department

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

• expansionary policy
• monetary policy
• contractionary policy
• budget deficit

Taxing & spending to slow the economy is referred to as 

• budget surplus 
• monetary policy
• contractionary policy
• budget deficit

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

• Physical Policy
• Fiscal Policy
• Money
• Monetary Policy

How are fiscal and monetary policies similar?

• They both use the same tools to fix economic problems
• They both try to promote economic stability.
• They always must have Congressional approval before passing.
• They both are decided by a Board of Governors.

The total value in dollars of all the goods and services sold in a country during a single year is referred to___________.

• Inflation

• GDP

• CPI

• unemployment

The Consumer Price Index (CPI) measures___________.

• inflation

• GDP

• unemployment

"The Fed" refers to the....

• Federal Bureau of Investigation
• Federal Government
• Federal Reserve System
• Federal Income Tax

What is an action of monetary policy?

• reduce taxes
• changing reserve requirements
• increase spending
• borrow money for deficit

What happens to the money circulation, when the FED orders a tight money policy?

• more money is put out into circulation
• less money is put into circulation
• circulation stays the same
• interest rates rise