Monetary and Fiscal Policy

Who is responsible for making fiscal policy decision?

• The President and Congress

• The Federal Reserve System

• The National Council of Economic Advisors

• The Department of Commerce

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

• Physical Policy

• Fiscal Policy

• The Federal Reserve

• Monetary Policy

Which of the following would stimulate the economy?

• Decrease taxes

• Raise taxes

• Government spends more on Science research

• Government cuts organizations like the National Science Foundation

The headline below indicates which type of policy:

"Fed unleashes another big rate hike in bid to curb inflation"

• Fiscal Policy

• Monetary Policy

Monetary policy decisions are made by:

• Congress

• President

• Senate

• The Fed

Taxing and Spending are tools of

• Fiscal Policy

• Monetary Policy

Is a joint effort between the executive and legislative branches

• Fiscal policy

• Monetary policy

To help the economy grow, the government can

• increase spending

• decrease spending

• lower the minimum wage

• raise taxes

The action by the FED to adjust the size of the money supply, and to adjust interest rates in order to keep prices down and employment high.

• Fiscal policy

• Monetary policy

In order to help the economy grow, the FED may____________the reserve requirement, allowing banks to loan more people money so that they spend more

• lower

• raise

• spend more

• save more