Economic Policy

What term is used to describe an increase in the general price level?

• Deflation
• Monetary policy
• Stagnation
• Inflation

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

• Physical Policy
• Fiscal Policy
• Money
• Monetary Policy

"The Fed" refers to the....

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

The Federal Reserve uses ______ to regulate the economy.

• Monetary Policy
• Fiscal Policy

There are _______ Regional Federal Reserve Banks, and one Federal Reserve Board of Governors.

• 50
• 4
• 12
• 52

To much money in our economy leads to 

• Inflation
• Recession

Which of the following would be considered a contractionary monetary policy?

• The purchase of bonds/securities

• The sale of bonds/securities

• An increase in taxes

• A decrease in government spending

• A decrease in the discount rate

If the economy is in a severe recession, which of the following policy actions is most appropriate?

• (A) Keeping the money supply constant and reducing the budget deficit

• (B) Decreasing government spending and taxes by the same amount

• (C) Increasing both the money supply and government spending

• (D) Increasing both the federal funds rate and taxes

• (E) Decreasing the money supply and increasing taxes

A tax that taxes a larger percentage of income form high income groups than from lower income groups.

• Progressive Tax

• Regressive Tax

• Proportional Tax

• Total Tax

A tax that takes a larger percentage of income from low income groups than from high income groups.

• Progressive Tax

• Regressive Tax

• Proportional Tax

• Total Tax