: Economic Functions and Government Policy

1) A cut in defense spending is an example of

• An expansionary fiscal policy

• A contractionary fiscal policy

• An expansionary monetary policy

• A contractionary monetary policy

The government imposes the expansionary fiscal policy by

• Increasing government taxes and increasing government expenditure.

• Decreasing government taxes and decreasing government expenditure.

• Increasing government taxes and decreasing government expenditure.

• Decreasing government taxes and increasing government expenditure.

Which of the following is the component under monetary policy?

• Reserved required ratio & Discount Rate

• Government spending & Tax

1) Government increase tax is an example of

• Expansionary fiscal policy

• A contractionary fiscal policy

• An expansionary monetary policy

• A contractionary monetary policy

Which of the following is the best policy to control inflation?

• Expansionary fiscal policy and Contractionary monetary policy

• Expansionary fiscal policy and expansionary monetary policy

• Contractionary fiscal and contractionary monetary policy

• Contractionary fiscal policy and Expansionary monetary policy

Which of the following is the policy to increase investment?

• Expansionary fiscal policy and Contractionary monetary policy

• Expansionary fiscal policy and expansionary monetary policy

• Contractionary fiscal and contractionary monetary policy

• Contractionary fiscal policy and Expansionary monetary policy

Which of the following is the policy to increase welfare and infrastructure?

• Expansionary fiscal policy and Contractionary monetary policy

• Expansionary fiscal policy and expansionary monetary policy

• Contractionary fiscal and contractionary monetary policy

• Contractionary fiscal policy and Expansionary monetary policy

The government implements contractionary monetary policy when recession occurs.

• TRUE

• FALSE

Reducing personal income tax rates is an example of expansionary fiscal policy.

• TRUE

• FALSE

The contractionary monetary policy is imposed by the government to control inflation.

• TRUE

• FALSE