Unit 5 & 6

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

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

"The Fed refers to the Federal Reserve System, the Central Bank of the United States. The FOMC is the Federal Open Market Committee, the group responsible for implementing monetary policy."

• Fiscal policy

• Monetary policy

"The U.S. Federal Reserve is almost certain to hike interest rates Wednesday to the highest level in a decade: 1.5 to 1.75 percent. "

• Fiscal policy

• Monetary policy

Monetary policy decisions are decided by:

• Congress

• Senate

• The Fed

• President

Which fiscal policy tool would be used if the economy were in a trough?

• decrease reserve requirement

• increase individual tax rate

• sell bonds through open market operations

• increase government spending

Which of the following statements is true?

• Contractionary monetary policy would increase government revenue & slow down the economy.

• Contractionary fiscal policy would decrease the reserve requirement & slow down the economy.

• Contractionary fiscal policy would lead to a decrease in national debt.

• Contractionary monetary policy leads to a budget deficit.