Monetary and Fiscal Policy

The federal government's overall approach to spending and taxes is called

• Contractionary Policy

• Fiscal Policy

• Expansionary Policy

• Monetary Policy

Fiscal Policy describes

• Government spending and taxation

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

"In February, lawmakers set themselves up to reach a more permanent spending agreement by the end of March. Congress agreed to increases to domestic and defense spending over the next two years, raising funding for domestic programs by $128 billion and hiking defense budgets by $160 billion. But they didn’t actually decide where the money would go."

• 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

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

• Protecting property rights

• Maintaining competition

• Protecting consumers, savers, and investors

• Protecting monopolistic corporations

During a period of recession the best action would be

• increase the money supply by lowering interest rates

• increase the money supply by increasing government taxes

• decrease the money supply by increasing govt. spending

• decrease the money supply by increasing the interest rate

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

Decreasing taxing & increasing spending to help the economy grow is referred to as

• expansionary policy
• monetary policy
• contractionary policy
• budget deficit

Increasing taxing & decreasing government spending to slow the economy is referred to as 

• budget surplus 
• monetary policy
• contractionary policy
• budget deficit

An example of expansionary fiscal policy would be

• cutting taxes.
• cutting government spending.
• cutting production of consumer goods.
• cutting prices of consumer goods.