Fiscal Policy

Who controls fiscal policy?

• The Federal Reserve

• The Federal Government

• The FBI

• Federal Income Tax

What is the purpose of Fiscal Policy?

• contribute to economic growth and stability

• keep rich people from getting too rich

• functions exactly like Fiscal Policy

• give Congress and the political parties more control of the economy

During economic crisis, the primary role of the Federal Government is to promote a healthy economy by...

• controlling the budget

• setting spending levels

• manipulating taxes and government spending

• loaning out money

Rapid expansion of the Business cycle that is causing High Inflation is a problem that the Federal Government can address?

• True

• False

Increasing taxes...

• increases money supply

• decreases money supply

Decreasing taxes...

• increases money supply

• decreases money supply

An expansionary policy means that the Federal Government is attempting to

• increase the nation's money supply

• decrease the nation's money supply

A contractionary policy means that the Federal Government is attempting to

• increase the nation's money supply

• decrease the nation's money supply

Which policy would help fight inflation?

• Expansionary Policy

• Contractionary Policy

Which policy would help fight unemployment?

• Expansionary Policy

• Contractionary Policy