Fiscal Policy

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

The two "tools" of Fiscal Policy are:

• the power to tax

• the power to spend

• the power to borrow money

• the power to print money

The Federal government is concerned that economic growth is too high, that it is unsustainable, and that inflation is resulting. Which of the following fiscal policies  might be enacted to reduce inflation?

• Increasing taxation
• Open market sales
• decreasing taxation
• Increasing government spending

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

What makes up the largest area of government spending?

• Food Stamps

• Medicare

• Social Security

• Interest payments

This principle says that only those that use the good or service should pay the tax

• Ability to Pay
• Fiscal
• Benefits
• Monetary

A transfer payment is when the government

• pays for trade with other countries
• buys something that get nothing in exchange for
• pays only for Medicare
• pays only for roads

This is a tax that where you pay more the more money you make

• regressive
• proportional
• progressive
• flat

What do Social Security taxes pay for?

• benefits to federal workers and military personnel
• benefits to those who are unemployed
• transportation and training expenses for low-income people
• benefits to older citizens, surviving family members of wage earners, and people with certain disabilities