Economics and Gov. EOC

Who is in charge of our nation's FISCAL policy?

• Congress

• Federal Reserve

• President

• Supreme Court

Who is in charge of our nation's MONETARY policy?

• Congress

• Federal Reserve

• President

• Supreme Court

Which of the following are examples of fiscal policy?

• Interest Rates

• Taxing and spending

• Open Market Operations

• Banking Regulations

Which of the following is an example of monetary policy?

• Interest Rates

• Taxing and Spending

• Borrowing

• Environmental Laws

If "the Fed" wants to stimulate economic growth, what action are they likely to take?

• cut taxes

• borrow money

• cut interest rates

• raise the reserve requirement

If "the Fed" wants to fight inflation, which action are they most likely to take?

• increase spending

• cut government salaries

• lower interest rates

• raise interest rates

Who keeps track of how much money is in circulation at any given time?

• Congress

• Federal Reserve

• US Bank

• FDIC

If Congress wants to stimulate economic growth, what will they do?

• Increase Taxes

• Raise the reserve requirement

• buy T Bill

• Lower Taxes

What actions might Congress take to CONTRACT the economy (contractionary policy)?

• decrease government spending and increase taxes

• increase government spending and lower taxes

• decrease interest rates and buy securities

• sell securities and raise interest rates

WHY might Congress raise taxes and decrease government spending (CONTRACTIONARY policy)?

• to increase aggregate demand

• to lower/decrease aggregate demand

• to increase inflation

• to force the Fed to do something