Fiscal Policy, Monetary Policy and the branches

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

• Maintain a stable and strong economy

• increase tariffs on foreign countries

"The Fed" refers to the....

• Federal Bureau of Investigation

• Federal Government

• Federal Reserve System/Bank

• Federal Income Tax

The federal government is attempting to encourage spending by consume rs and businesses, a fiscal policy BEST serving this purpose would be

• decreasing taxes
• decreasing government spending
• reducing the investment tax credit
• balancing the budget

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

What are two tools the government has to carry out its monetary policy?

• government spending and reserve requirement

• Discount rate (interest rate) and the reserve requirement

• buy/selling bonds and taxes

• discount rate and taxes

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

• Local referendums

• Taxes

• Discount Rate

• Government Spending

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

The federal government's overall approach to spending and taxes is called

• Physical Policy

• Fiscal Policy

• вежба

• Monetary Policy