Fiscal and Monetary Policy

When the federal government uses its spending and revenue to influence the economy

• Fiscal Policy

• Monetary Policy

• Keynesian Policy

• Supply Side Policy

Which of the following is NOT a goal of fiscal policy?

• Deficit Growth

• Economic Growth

• Full Employment

• Stable Prices

Which of the following is NOT a feature of a contractionary fiscal policy?

• Decreasing taxes

• Decreasing spending

• Decreasing aggregate demand

• Increasing taxes

Which fiscal policy is the government likely to adopt during a contraction?

• Expansionary

• Contractionary

• Easy Money

• Tight Money

Which of the following is NOT a feature of expansionary fiscal policy?

• Decrease aggregate demand

• Increase government spending

• Cut taxes

• Decrease unemployment

Which of the following is NOT a limitation of fiscal policy?

• Mandatory spending can be changed

• Lawmakers wait too long to change the policy

• Lawmakers act in voters' self-interest

• Federal and state fiscal policies conflict

Keynesian followers believe this entity should increase demand during contractions

• Federal Government

• Federal Reserve

• State Governments

• Individual Producers

This amount is the sum of all money the government has borrowed

• National Debt

• Budget Deficit

• Budget Surplus

• Tight Money

Which of the following is NOT a way the Fed influences the money supply?

• Decreasing taxes

• Changing the reserve ratio

• Influencing interest rates

• Buying or selling government securities

Which policy is the Fed likely to adopt during an expansion?

• Tight Money

• Easy Money

• Expansionary

• Contractionary