Fiscal vs Monetary Policy

taxing and spending

• fiscal

• monetary

joint effort between the executive and legislative branches

• fiscal

• monetary

Congress reviews the budget and offers suggestions

• fiscal

• monetary

to help the economy grow, the government will decrease or lower taxes. This allows people to have more money and buy more goods and services

• fiscal

• monetary

What can the government do to slow the economy down?

• lower taxes

• raise taxes

• spend more

• spend less

to help the economy grow, the government can

• increase spending

• decrease spending

• lower taxes

• raise taxes

to slow the economy down the government can.....

• spend more

• spend less

• tax more

• tax less

the action by the FED to adjust the size of the money supply, and to adjust interest rates in order to keep prices down and employment high.

• fiscal policy

• monetary policy

to help the economy grow, the FED may____________the reserved requirement, allowing banks to loan more people money so that they spend more

• lower

• raise

• spend more

• save more

to slow the economy, the FED may____________ the reserve requirements and there will be less money to loan out to people.

• increase

• decrease

• spend more

• tax more