Fiscal and monetary policy review

Fiscal Policy is concerned with

• Government Spending and taxation
• Consumer spending and productivity
• Government spending and the money supply
• Taxation and inflation

An example of expansionary is what? (Multiple answers - must pick all to receive credit)

• Decrease taxes

• Raise taxes

• Government spends more on Science research

• Government cuts organizations like the National Science Foundation

Examples of contractionary fiscal policy includes which of the following (choose all correct answers)?

• Raise taxes on corporations

• Lower the corporate tax rate

• Government increases spending on research in Antarctica

• Government cuts spending on education

Which is NOT one of government's role in the economy?

• Protecting property rights

• Maintaining competition

• Protecting consumers, savers, and investors

• Protecting monopolistic corporations

What is an example of a positive externality?

• Air pollution from factories

• Eminent domain

• Allowing people to smoke on school campuses

• A student getting immunizations in order to go to school

The goals of monetary policy include (more than one answer - pick all correct answers for credit):

• regulating the amount of money circulating in the economy

• Keep inflation high

• Keep inflation low

• Keep unemployment low

• Raise the unemployment levels

a rise in the cost of goods and services

• inflation
• discount rate
• interest
• monetary policy

Fee charged by the Federal Reserve Bank for other member banks to borrow money from the FED through the discount window?

• inflation

• interest

• discount rate

• reserve requirement

The goal of monetary policy is to

• sell bonds

• reduce unemployment

• prevent inflationary and recessionary economic periods

• increase tariffs on foreign countries

"The Fed" refers to the....

• Federal Bureau of Investigation

• Federal Government

• Federal Reserve System/Bank

• Federal Income Tax