Fiscal/Monetary Policy

a rise in the cost of goods and services

• inflation
• discount rate
• interest
• monetary policy

The goal of monetary policy is to

• sell bonds

• reduce unemployment

• prevent inflationary and recessionary economic periods

• increase tariffs on foreign countries

If the United States is experiencing inflation, the Fed will likely

• Increase the supply of money in the economy
• Decrease the supply of money in the economy

In a recession, the Fed would likely

• Increase the supply of money in the economy
• Decrease the supply of the money in the economy

Does increasing the money supply cause inflation or deflation?

• Inflation
• Deflation

Money loses its value when it

• It becomes too plentiful
• becomes too portabale
• is divisible
• is durable

Choose the 2 answers below that are fiscal policy tools of the Federal Government

• Local referendums

• Taxes

• Discount Rate

• Government Spending

Who is in charge of fiscal policy?

• Government
• Federal Reserve

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