Fiscal and Monetary Policy

Monetary policy refers to what?

• How government regulates the amount of money in circulation

• The federal government’s overall approach to spending, borrowing, and taxation.

• A general, sustained upward movement of prices for goods and services in an economy.

• The upper limit set on the amount of money the government may borrow to meet its existing legal obligations.

Whose job is it to control the money supply?

• The Executive Branch of Government

• The Legislative Branch of Government

• Federal Reserves

• President

Fiscal policy deals with what?

• How government regulates the amount of money in circulation

• Government expenditures in excess of government revenues.

• A general, sustained upward movement of prices for goods and services in an economy.

• Raising taxes and using the money that's raised

What are things in budget called that can't be cut?

• Mandatory spending

• Inflation

• Discretionary Spending

• Reserves

Most government spending goes where?

• Education

• Healthcare

• Defense

• Science

America's central bank is known as what?

• Congress

• Federal Reserves

• White House

• Bank of America

Tools of Fiscal Policy are

• Spending, borrowing, taxing

• Money supply, interest rates

• Lending money to private banks, paying interest on bank reserves

• The Central Bank

When a government spends more than it takes in

• Budget surplus

• Inflation

• Budget Deficit

• Economic growth

A tax on imported or exported goods.

• Inflation

• Monetary Policy

• Reserves

• Tariff

Maximum Employment

• Job markets performing at their best possible sustainable levels over the long-term

• Government actions or policies that shield domestic industries from foreign competition.