Fiscal Policy and Trade

Who is in charge of fiscal policy?

• Government
• Federal Reserve

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

An example of expansionary fiscal policy would be

• cutting taxes.
• cutting government spending.
• cutting production of consumer goods.
• cutting prices of consumer goods.

If and economy experiences a dramatic rise in prices, which fiscal policy action could be taken?

• Selling securities on the open market
• Raising interest rates
• Reducing government spending
• Raising reserve requirements

When the government raises taxes, what does it take out of circulation?

• Money
• Credit
• People
• Jobs

More revenue than expenditures.

• Budget Surplus

• Budget Deficit

More expenditures than revenue.

• Budget Surplus

• Budget Deficit

The purpose of fiscal policy is to...

• increase the money supply.
• increase economic efficiency.
• stabilize the economy.
• increase economic growth only.